(RTTNews) - Tuesday, provider of flow equipment products, systems, and services Cameron International Corp. (CAM: News ), reported a decline in earnings for the third quarter, hit by severance-related charges as well as an 18% drop in revenues from last year, mainly due to pricing pressure and reduced purchasing by customers. The company also raised its earnings forecast for fiscal year 2009.

The Houston, Texas-based company's net income for the third quarter decreased to $124.9 million or $0.56 per share from $163.0 million or $0.71 per share in the year-ago quarter. The results for the latest quarter included a pretax charge of $5.9 million or $0.02 per share, for severance-related costs

On average, 22 analysts polled by Thomson Reuters expected the company to earn $0.53 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

In the sequentially preceding quarter, Cameron reported net income of $138.6 million or $0.62 per share, down from $148.8 million or $0.64 per share in the year-earlier quarter.

Revenue for the recent third quarter dropped to $1.23 billion from $1.50 billion reported in the corresponding quarter a year earlier. Street analysts' had a consensus revenue estimate of $1.28 billion for the quarter.

For the preceding second quarter, Cameron reported revenues that declined 14% to $1.27 billion from $1.48 billion a year ago.

Segment wise, Drilling & Production systems revenues for the third quarter slipped to $791.5 million from $957.0 million in the year earlier quarter. Valves & Measurement revenues dropped to $294.7 million from $383.7 million, while Compression systems revenues slid to $145.6 million from $164.0 million in the prior year quarter.
Income before income taxes for the quarter was $168.6 million, down 30% from $242.2 million last year.

Total costs and expenses for the quarter were $1.06 billion, compared to $1.26 billion in the same quarter last year.

Jack Moore, president and chief executive officer, Cameron said, "The results reflect a continued focus on exceptional execution by our team in a difficult market. " Moore also noted that margins held up well during the quarter.

Cameron indicated that orders received during the third quarter totaled $1.34 billion, up from the levels of the first two quarters of 2009. Drilling & Production Systems orders benefited from the bookings associated with a multi-year frame agreement for subsea equipment offshore Brazil, whereas orders in Valves & Measurement and Compression Systems reached their highest quarterly totals to date during 2009. As a result, Cameron's total orders surpassed revenues during the quarter for the first time since the third quarter of 2008, driving an increase in its total backlog.

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