(RTTNews) - Oilfield services company National Oilwell Varco, Inc. (NOV: News ) reported Monday a sharp fall in profit for the third quarter, hurt by lower revenues from Petroleum Services & Supplies and Distribution Services segments, mainly due to pricing pressure and reduced purchasing by domestic customers.

The Houston, Texas-based company's net income net income attributable to company for the third quarter fell to $385 million or $0.92 per share from $548 million or $1.31 per share last year.

The latest quarter results included transaction and restructuring charges of $17 million pre-tax, or $0.03 per share after-tax, compared to prior year's transaction and restructuring costs of $28 million pre-tax.

Excluding charges, third-quarter net income was $396 million or $0.95 per share. On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.79 per share. Analysts' estimates typically exclude special items.

Total revenue declined 15% to $3.09 billion from $3.61 billion in the prior year quarter, yet beat fourteen Wall Street analysts' revenue estimate of $2.90 billion.

Segment-wise, third-quarter revenues for the Rig Technology rose 4% to $2.00 billion from last year's $1.93 billion. Revenue out of backlog for the segment rose 17% year-over-year, to $1.599 billion. The company pointed out that efficiencies and favorable cost results on large rig construction projects contributed to the strong margin performance by the segment.
In the Petroleum Services & Supplies segment, revenues fell 33% to $882 million from $1.31 billion a year ago, as the segment continued to face pricing pressure and reduced purchasing by domestic customers, and slightly lower rig counts in international markets, despite modest gains in North American rig counts.

The Distribution Services segment generated revenues of $306 million in the quarter, down 39% from prior year's $498 million. The company noted that the division was benefited from sequential seasonal sales improvements in Canada, which was fully offset by lower domestic and other international sales, adversely affecting the mix.

In the quarter, total gross profit fell to $897 million, or 29.1% of total revenues, from $1.13 billion or $31.2% of total revenues last year. Operating profit declined to $601 million from $790 million a year ago. Total operating profit before intangible asset impairment and transaction and restructuring costs dropped to $618 million or 20% of revenues from $818 million or 22.7% of total revenues a year ago.

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