Oilfield equipment maker National Oilwell Varco Inc. (NOV) Friday reported a lower profit for the first quarter, amid a softer than anticipated North American market. The stock is falling over 3 percent in pre-market trading.
Pete Miller, CEO, said, "The North American market was softer than anticipated...while we are cautious regarding the timing of a North America recovery, we remain confident that land drillers and well service firms will soon consume their current inventories, ultimately requiring more of our products and services.''
Net income fell to $502 million or $1.17 per share from last year's $606 million or $1.42 per share. The latest results included transaction costs related to the Robbins & Myers acquisition and Venezuela currency devaluation charges.
Excluding these costs and charges, earnings were $553 million or $1.29 per share. On average, 31 analysts polled by Thomson Reuters expected earnings per share of $1.36 for the quarter. Analysts' estimates typically exclude one-time items.
Total revenue increased 23 percent to $5.31 billion from $4.30 billion in the first quarter of 2012. Analysts estimated revenues of $5.38 billion for the quarter.
Rig Technology revenues increased 16 percent to $2.63 billion. Backlog for capital equipment orders for the segment at March 31, was a record at $12.92 billion, up 24 percent from last year. New orders were $3.04 billion, reflecting continued strong demand for oilfield equipment.
Distribution & Transmission revenues more than doubled to $1.23 billion due mostly to mergers completed in 2012.
The stock, which closed at $67.21 on Thursday, is losing 3.3 percent in pre-market activity.
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