Cameron Announces Second Quarter Earnings

                  Cameron Announces Second Quarter Earnings

- Second quarter earnings per share of $1.00, excluding unusual items

- Margins expand sequentially

- 4.5 million shares repurchased during quarter

- Full year earnings guidance raised

PR Newswire

HOUSTON, July 24, 2014

HOUSTON, July 24, 2014 /PRNewswire/ --Cameron (NYSE: CAM) reported earnings
per share for the second quarter of 2014 of $1.00 excluding unusual items.
This compares to earnings per share for the second quarter of 2013 of $0.77
excluding unusual items. The unusual items for the second quarter of 2014 were
after-tax credits of $0.02 per share and a $0.06 per share gain from
discontinued operations. The unusual items for the second quarter of 2013 were
charges and the tax consequences related to the formation of OneSubsea of
$0.22 and a $0.02 per share gain from discontinued operations.

The Company reported GAAP earnings per diluted share of $1.08 for the second
quarter of 2014, as compared to $0.57 for the second quarter of 2013.

Year-over-year revenues increase
Revenues were a second quarter record of $2.64 billion, up nearly 20 percent
from $2.21 billion a year ago. Cameron Chairman, President and Chief Executive
Officer Jack B. Moore noted that each business within the Drilling and
Production Systems group enjoyed sequential as well as year-over-year revenue
growth. The Valves & Measurement group also saw sequential revenue
improvement. Moore commented, "Revenue gains were driven by record backlogs
established in 2013, better efficiency within our manufacturing operations and
record North American surface and valves orders and sales."

Margins improve sequentially
Moore stated, "Sequential margin improvement was achieved in each of our
businesses, with DPS showing a 140 basis point margin expansion. Our Drilling
Systems business had the largest sequential expansion. Our progress with the
Drilling Systems capacity build-out allowed us to increase throughput and
improve margins significantly during the quarter. We have begun a margin
expansion trend driven by better pricing in our backlog, improved execution,
elimination of lower margin non-core businesses and aggressive cost control."

Orders and backlog strong
Total orders for the quarter were $2.44 billion, up from $2.24 billion a year
ago, an increase of 9 percent. "Orders for the second quarter were driven by
our drilling, surface and valves businesses", Moore said, "and with a more
robust outlook for North America and several deepwater projects expected to
move forward in the second half, we expect to see a record level of backlog at
year-end."

Cameron's backlog at the end of the second quarter was $11.1 billion, down
slightly from its historical high of $11.4 billion at the end of 2013. Second
quarter backlog is up over 7 percent from prior year levels.

Share repurchase activity continued
The Company continued to repurchase its shares, acquiring 4.5 million shares
during the quarter. Year-to-date the Company has repurchased 19.7 million
shares. This follows a record year in 2013, when 27 million shares were
repurchased. Fully diluted shares outstanding at the end of the second quarter
were 204 million. Remaining authorization for future share repurchases was
$456 million at the end of the quarter.

Capital investment opportunities continue
The Company invested $73 million in capital expenditures in the second
quarter, primarily in Surface Systems and OneSubsea. Full year capital
expenditures are expected to be between $450 and $500 million. Focus will be
on supporting rapidly expanding onshore markets and aftermarket services for
Drilling Systems and OneSubsea.

Full year earnings guidance raised
Based upon the Company's expected continued margin expansion over the back
half of the year as well as robust market conditions in North America, the
Company is raising its full year earnings outlook to a range of $4.00 to $4.25
per share excluding unusual items. Cameron currently expects third quarter
earnings from continuing operations to be in the range of $1.10 to $1.20 per
diluted share excluding unusual items.

Cameron (NYSE: CAM) is a leading provider of flow equipment products, systems
and services to worldwide oil, gas and process industries.

Website: www.c-a-m.com

In addition to the historical data contained herein, this document includes
forward-looking statements regarding market conditions, anticipated earnings
of the Company, including those of OneSubsea, for the third quarter and full
year 2014, as well as expectations regarding improved margin expansion and
improved execution in its drilling business, orders and increased capital
spending, made in reliance upon the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. 

The Company's actual results may differ materially from those described in
forward-looking statements. Such statements are based on current expectations
of the Company's performance and are subject to a variety of factors, some of
which are not under the control of the Company, which can affect the Company's
results of operations, liquidity or financial condition. Such factors may
include overall demand for, and pricing of, the Company's products,
particularly as affected by North American activity; the size and timing of
orders; the Company's ability to successfully execute the large subsea and
drilling systems projects it has been awarded; the possibility of
cancellations of orders; the Company's ability to convert backlog into
revenues on a timely and profitable basis; the impact of acquisitions the
Company has made or may make; changes in the price of (and demand for) oil and
gas in both domestic and international markets; raw material costs and
availability; political and social issues affecting the countries in which the
Company does business; fluctuations in currency markets worldwide; and
variations in global economic activity. In particular, current and projected
oil and gas prices historically have generally directly affected customers'
spending levels and their related purchases of the Company's products and
services. Additionally, changes in oil and gas price expectations may impact
the Company's financial results due to changes it may make in its cost
structure, staffing or spending levels.

Because the information herein is based solely on data currently available, it
is subject to change as a result of changes in conditions over which the
Company has no control or influence, and should not therefore be viewed as
assurance regarding the Company's future performance. Additionally, the
Company is not obligated to make public indication of such changes unless
required under applicable disclosure rules and regulations.





Cameron

Unaudited Consolidated Condensed Results of Operations

($ and shares in millions except per share data)
                                    Three Months Ended        Six Months Ended

                                    June 30,                  June 30,
                                    2014         2013         2014     2013
Revenues:
Drilling & Production Systems       $   1,903  $   1,438  $      $  
                                                              3,608    2,707
Valves & Measurement                536          534          1,028    1,056
Process & Compression Systems       202          237          436      507
Total revenues                      2,641        2,209        5,072    4,270
Costs and Expenses:
Cost of sales (exclusive of
depreciation and amortization       1,893        1,567        3,658    3,020
shown separately below)
Selling and administrative          346          315          675      618
expenses
Depreciation and amortization       90           67           177      135
Interest, net                       30           25           62       51
Other costs (credits)               (4)          35           44       66
Total costs and expenses            2,355        2,009        4,616    3,890
Income from continuing operations   286          200          456      380
before income taxes
Income tax provision                (66)         (64)         (114)    (97)
Income from continuing operations   220          136          342      283
Income from discontinued            13           4            7        6
operations, net of income taxes
Net income                          233          140          349      289
Net income attributable to          12           –            17       –
noncontrolling interests
Net income attributable to Cameron  $         $         $     $   
stockholders                        221         140         332     289
Amounts attributable to Cameron
stockholders:
 Income from continuing          $         $         $     $   
operations                          208         136         325     283
Income from discontinued            13           4            7        6
operations
Net income attributable to Cameron  $         $         $     $   
stockholders                        221         140         332     289
Earnings per common share
attributable to Cameron
stockholders:
 Basic
 Continuing operations           $         $         $     $   
                                    1.02         0.55         1.55     1.15
 Discontinued operations         0.06         0.02         0.04     0.02
Earnings per share attributable to  $         $         $     $   
Cameron stockholders                1.08         0.57         1.59     1.17
Diluted
 Continuing operations           $         $         $     $   
                                    1.02         0.55         1.54     1.14
 Discontinued operations         0.06         0.02         0.04     0.02
Earnings per share attributable to  $         $         $     $   
Cameron stockholders                1.08         0.57         1.58     1.16
Shares used in computing earnings
per common share:
Basic                               204          247          209      247
Diluted                             205          248          211      249
EBITDA, excluding other costs
(credits):
Drilling & Production Systems       $         $         $     $   
                                    304         239         553     438
Valves & Measurement                119          119          225      242
Process & Compression Systems^(1)   20           23           43       49
Corporate and other^(2)             (41)         (54)         (82)     (97)
Total                               $         $         $     $   
                                    402         327         739     632

^(1)    Excludes discontinued operations
        Corporate EBITDA amounts exclude $(4) million and $35 million of other
^(2)    costs (credits) for the three-month periods ended June 30, 2014 and
        2013; and $44 million and $66 million for the six month periods ended
        June 30, 2014 and 2013.





Cameron

Consolidated Condensed Balance Sheets

($ millions)
                                         June 30,           December 31,

                                         2014               2013
                                         (unaudited)
Assets:
Cash and cash equivalents                $     1,525   $      1,813
Short-term investments                   56                 41
Receivables, net                         2,548              2,719
Inventories, net                         3,268              3,133
Other                                    385                463
Total current assets                     7,782              8,169
Plant and equipment, net                 2,015              2,037
Goodwill                                 2,704              2,925
Intangibles, net                         856                904
Other assets                             235                214
Total Assets                             $    13,592    $     14,249
Liabilities and Stockholders' Equity:
Short-term debt                          $       562  $       
                                                            297
Accounts payable and accrued liabilities 3,506              3,883
Accrued income taxes                     100                80
Total current liabilities                4,168              4,260
Long-term debt                           2,814              2,563
Deferred income taxes                    251                277
Other long-term liabilities              229                233
Total liabilities                        7,462              7,333
Stockholders' Equity:
Common stock, par value $.01 per share,
400,000,000 shares authorized,           3                  3
263,111,472 shares issued at June 30,
2014 and December 31,2013
Capital in excess of par value           3,220              3,207
Retained earnings                        5,152              4,820
Accumulated other elements of            (76)               (80)
comprehensive income (loss)
Less: Treasury stock, 60,027,350 shares
at June 30, 2014 (41,683,164 shares at   (3,261)            (2,098)
December 31, 2013)
  Total Cameron stockholders'  5,038              5,852
equity
 Noncontrolling interests             1,092              1,064
 Total equity                         6,130              6,916
Total Liabilities and Stockholders'      $    13,592    $    14,249
Equity



Cameron

Unaudited Consolidated Condensed Statements of Cash Flows

($ millions)
                                    Three Months Ended    Six Months Ended

                                    June 30,              June 30,
                                    2014       2013       2014       2013
Cash flows from operating
activities:
 Net income                      $   233  $   140  $   349  $   289
Adjustments to reconcile net
income to net cash provided by
operating activities:
Gain on sale of Reciprocating       (95)       –          (95)       –
Compression business
 Depreciation                71         59         139        115
 Amortization                19         11         38         25
 Non-cash stock              15         14         30         27
compensation expense
Gain from remeasurement of prior
interest in equity method           (8)        –          (8)        –
investment
Deferred income taxes and tax
benefit of employee stock           34         (2)        17         12
compensation plan transactions
Changes in assets and liabilities,
net of translation, and non-cash
items:
 Receivables                 171        (236)      111        (71)
 Inventories                 (53)       (124)      (228)      (340)
 Accounts payable and        (257)      212        (471)      7
accrued liabilities
 Other assets and            83         (44)       157        (57)
liabilities, net
 Net cash provided by    213        30         39         7
operating activities
Cash flows from investing
activities:
 Proceeds from sales and
maturities of short-term            18         353        23         628
investments
 Purchases of short-term         (33)       (135)      (38)       (421)
investments
 Capital expenditures            (73)       (99)       (178)      (182)
Proceeds received from sale of
Reciprocating Compression           547        –          547        –
business, net 
 Other dispositions              (18)       8          (18)       9
(acquisitions), net
Proceeds received and cash
acquired from formation of          –          603        –          603
OneSubsea. 
 Proceeds from sales of plant    4          3          10         4
and equipment
 Net cash provided by    445        733        346        641
investing activities
Cash flows from financing
activities:
Issuance of senior notes            500        –          500        –
Debt issuance costs                 (4)        –          (4)        –
 Short-term loan borrowings      (321)      (28)       9          9
(repayments), net
 Purchase of treasury stock      (303)      (93)       (1,205)    (125)
 Proceeds from stock option
exercises, net of tax payments      16         7          25         29
from stock compensation plan
transactions
 Excess tax benefits from
employee stockcompensation plan    4          2          6          8
transactions
 Principal payments on capital   (5)        (7)        (8)        (10)
leases
 Net cash used for           (113)      (119)      (677)      (89)
financing activities
Effect of translation on cash       8          (8)        4          (27)
Increase (decrease) in cash and     553        636        (288)      532
cash equivalents
Cash and cash equivalents,          972        1,082      1,813      1,186
beginning of period
Cash and cash equivalents, end of   $ 1,525   $ 1,718   $ 1,525   $ 1,718
period



Cameron

Orders and Backlog

($ millions)


Orders^(1)
                         Three Months Ended          Six Months Ended

                         June 30,                    June 30,
                         2014          2013          2014          2013
Drilling & Production    $          $          $          $   
Systems                  1,690         1,503         3,449         4,246
Valves & Measurement     517           524           1,053         1,062
Process & Compression    229           212           416           480
Systems
Total                    $          $          $          $   
                         2,436         2,239         4,918         5,788

Backlog^(1)
                               June 30,     December 31,        June 30,

                               2014         2013                2013
Drilling & Production Systems  $   9,209  $      9,451  $   8,470
Valves & Measurement           1,026        1,017               1,063
Process & Compression Systems  908          942                 832
Total                          $  11,143   $     11,410   $  10,365

^(1)  Excludes discontinued operations





Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions)


                       Three Months Ended June 30, 2014
                       Drilling &   Valves &      Process &            
                       Production   Measurement  Compression
                       Systems                   Systems^(1)  Corporate  Total
Income (loss) from     $       $        $       $      $  
continuing operations  235          107          13         (69)        
before income taxes                                                      286
Depreciation &         69           12           7            2          90
amortization
Interest, net          –            –            –            30         30
Other costs (credits)  –            –            –            (4)        (4)
EBITDA, excluding      $       $        $       $      $  
other costs            304          119          20         (41)        
                                                                         402
                       Three Months Ended June 30, 2013
                       Drilling &                Process &
                       Production   Valves &     Compression  Corporate  Total
                                    Measurement  Systems^(1)
                       Systems
Income (loss) from     $       $        $       $       $  
continuing operations  196          109          17         (122)        
beforeincome taxes                                                      200
Depreciation &         43           10           6            8          67
amortization
Interest, net          –            –            –            25         25
Other costs            –            –            –            35         35
EBITDA, excluding      $       $        $       $      $  
other costs            239          119          23         (54)        
                                                                         327

^(1)      Excludes discontinued operations

^



Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions)


                       Six Months Ended June 30, 2014
                       Drilling &   Valves &     Process &
                       Production  Measurement  Compression  Corporate  Total
                       Systems                   Systems^(1)
Income (loss) from     $       $        $       $       $  
continuing operations  418          201          28         (191)       
beforeincome taxes                                                      456
Depreciation &         135          24           15           3          177
amortization
Interest, net          –            –            –            62         62
Other costs            –            –            –            44         44
EBITDA, excluding      $       $        $       $      $  
other costs            553          225          43         (82)        
                                                                         739
                       Six Months Ended June 30, 2013
                       Drilling &   Valves &     Process &
                       Production   Measurement  Compression  Corporate  Total
                       Systems                   Systems^(1)
Income (loss) from     $       $       $       $       $  
continuing operations   350         222        37         (229)       
before income taxes                                                      380
Depreciation &         88           20           12           15         135
amortization
Interest, net          –            –            –            51         51
Other costs            –            –            –            66         66
EBITDA, excluding      $       $       $       $      $  
other costs             438         242        49         (97)        
                                                                         632

^(1)     Excludes discontinued operations





Cameron

Reconciliation of GAAP to Non-GAAP Financial Information

($ millions, except per share amounts)
                                             Three Months Ended

                                             June 30, 2014
                                             After Tax^(1)     Diluted EPS^(2)
Income from continuing operations            $      220
Less: Net income attributable to            12
noncontrolling interests
Net income attributable to Cameron from      208               $     1.02
continuing operations
Adjustments:
Gain from remeasurement of prior interest in (6)
equity method investment^(1)
 Impairment of intangible assets^(1)      3
Net income attributable to Cameron excluding $      205  $     1.00
charges (credits)

^(1) Individual adjustment assumes a 23.0% effective tax rate
^(2) Based on 205 million diluted shares

                                               Three Months Ended

                                               June 30, 2013
                                               After Tax       Diluted EPS^(2)
Income from continuing operations              $     136  $     0.55
 Adjustments:
  Foreign currency losses^(1)               3
  OneSubsea tax consequences                24
  Other costs^(1) –
  OneSubsea formation costs                 23
  Acquisition integration costs     1
  Mark-to-market impact on currency
 derivatives not designated as accounting      (2)
 hedges
  Currency devaluation, litigation, 7
 restructuring and other costs
 Net income excluding charges        $     192  $     0.77

^(1) Individual adjustments assume an 20.0% effective tax rate
^(2) Based on 248 million diluted shares

^

SOURCE Cameron

Website: http://www.c-a-m.com
Contact: Jeff Altamari, Vice President, Investor Relations, (713) 513-3344
 
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