Varco Announces Second Quarter Results
ORANGE, Calif., July 19 /PRNewswire/ -- Varco International, Inc.
(NYSE: VRC) today announced results of operations for the second quarter and
six months ended June 30. Net Income for the quarter was $11.2 million,
$.17 per share (diluted), on Revenues of $155.9 million. For the second
quarter of 1998, Net Income was $19.7 million, $.30 per share (diluted), and
Revenues totaled $197.2 million.
For the first six months of this year, Net Income was $22.9 million,
$.35 per share (diluted), as compared to $34.7 million, $.53 per share
(diluted), during the comparable period of 1998. Revenues for the most recent
six months were $308.0 million, versus $347.4 million for the same period a
year ago.
Reflecting the continuation of sharply reduced drilling activity, incoming
orders for the most recent quarter totaled $63.2 million (before order
cancellations of $1.1 million), as compared to $193.6 million during the
second quarter of last year. Backlog at June 30 was $178.8 million.
Set forth below are Revenues and orders for each of the Company's
operating divisions for the quarters ended June 30, 1999 and 1998.
Revenues Orders
1999 1998 1999 1998
(In thousands)
Varco Systems $49,929 $70,310 $15,796 $43,672
Varco BJ 21,750 23,906 8,926 26,432
M/D Totco 14,991 23,237 13,672 37,271
Shaffer 66,068 71,750 23,318 83,467
Rigtech 2,709 7,771 1,526 2,773
Cancellations N/A N/A (1,123) 0
155,447 $196,974 $62,115 $193,615
Varco's Chairman and Chief Executive Officer George Boyadjieff commented,
"Despite a significant rebound in oil prices, worldwide drilling activity
remains severely depressed, as reflected in the sharply reduced level of
incoming orders. However, our backlog of orders for equipment yet to be
delivered to those offshore rigs still under construction resulted in second
quarter revenues above the incoming order rate, a situation which we expect to
continue over the remainder of the year. Meanwhile, we are continuing to
reduce our cost structure in line with the expectation of declining revenues
over the next few quarters.
"With several of the recently built deep water rigs now beginning to
drill, the performance of Varco equipment and the benefits of rig automation
are being highlighted, solidifying Varco's position as the leading supplier of
drilling equipment and again validating our long-run strategy," Boyadjieff
concluded.
QUARTER ENDED JUNE 30 1999 1998
(In $000's except per Share)
Revenues $155,877 $197,211
Income Before Income Taxes 16,566 29,997
Net Income 11,164 19,729
Basic Income Per Share .17 .31
Shares Used to Calculate Per Share Amounts 65,045 64,444
Diluted Income Per Share .17 .30
Shares Used to Calculate Per Share Amounts 65,897 65,885
SIX MONTHS ENDED JUNE 30 1999 1998
(In $000's except per Share)
Revenues $308,045 $347,402
Income Before Income Taxes 34,711 52,757
Net Income 22,898 34,714
Basic Income Per Share .35 .54
Shares Used to Calculate Per Share Amounts 64,891 64,342
Diluted Income Per Share .35 .53
Shares Used to Calculate Per Share Amounts 65,744 65,783
This press release contains forward-looking statements, which involve
risks and uncertainties that may impact the Company's results of operations.
These statements include, among others, statements concerning the Company's
general business strategies, customer orders and cancellations, backlog and
industry trends. See "Cautionary Statement Pursuant to Private Securities
Litigation Reform Act of 1995" included in Varco's 1998 Annual Report to
Shareholders for a description of certain of these risks and uncertainties.
Varco International, Inc. is a leader in the design and manufacture of
drilling equipment and machinery and rig instrumentation for oil and gas well
drilling worldwide.
SOURCE Varco International, Inc.
CO: Varco International, Inc.
ST: California
IN: OIL MAC
SU: ERN
07/19/99 16:10 EDT prnewswire.com |
