Cameron reported earnings per share for the second quarter of 2014 of US$ 1 excluding unusual items. This compares to earnings per share for the second quarter of 2013 of US$ 0.77 excluding unusual items. The unusual items for the second quarter for 2014 were after tax credits of US$ 0.02 per share and a US$ 0.06 per share gain from discounted operations.
Revenues were a second quarter record of US$ 2.64 billion, up nearly 20% from US$ 2.21 billion a year ago. Cameron Chairman, President and CEO Jack B. Moore noted that each business with 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.’
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
Total orders for the quarter were US$ 2.44 billion, up from US$ 2.24 billion a year ago, an increase of 9%. Moore said, ‘orders for the second quarter were driven by our drilling, surface and valves business, 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 US$ 11.1 billion, down slightly from its historical high of US$ 11.4 billion at the end of 2013. Second quarter backlog is up over 7% from prior year levels.
Cameron invested US$ 73 million in capital expenditures in the second quarter, primarily in Surface Systems and OneSubsea. Full year capital expenditures are expected to be between US$ 450 and US$ 500 million. Focus will be on supporting rapidly expanding onshore markets and aftermarket services for Drilling Systems and OneSubsea.
Adapted by Claira Lloyd
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