July 25 (Bloomberg) -- FMC Technologies Inc., the third-largest U.S. maker of oilfield equipment, rose the most in 11 months after the profit margin increased on its underwater equipment.
FMC, based in Houston, rose 4.1 percent to $41.92 at 10:54 a.m. in New York. The shares earlier rose 6.8 percent, the most intraday since August 23, 2011.
The company will have $4 billion to $5 billion in subsea-related orders this year as the market for underwater drilling equipment strengthens, FMC Chief Executive Officer John Gremp said on an earnings call today. The profit margin on the company’s subsea sales increased to 11.6 percent, higher than the 10 percent estimate of Stephen Gengaro, an analyst with Stern Agee & Leach Inc., according to his note to clients yesterday.
“People were worried about subsea margins and FMC performed well,” Gengaro wrote in an e-mail today. He has a neutral rating on FMC and doesn’t own any shares.
National Oilwell Varco Inc. and Cameron International Corp., both based in Houston, are the largest U.S. makers of oilfield equipment.
To contact the editor responsible for this story: Susan Warren at email@example.com