Still enjoying good times: oilfield services company Lufkin
Lufkin beats expectations to up income
Manufacturer Lufkin Industries fourth-quarter earnings beat Wall Street estimates, helped by higher backlog and continued demand for its oilfield products in North Africa and the Middle East.
Lufkin did not give an outlook for 2009 citing uncertainty in the market, and said its customers were uncertain about their operating expenses and capital expenditures due to a gloomy view for oil prices, wrote Reuters.
For the quarter ended 31 December, net income from continuing operations rose 34% to $26.6 million, or $1.79 per share.
Excluding items, income for the quarter was $2.02 per share, Lufkin, which supplies oilfield pumps, foundry castings and power transmission products, said.
Sales in the oilfield division rose 67%.
Continued demand in North Africa and the Middle East resulted in new orders for both automation products and pumping units.
A decline in commodity prices and the deepening recession are having an impact on the company as well, chief executive John Glick said.
"In addition to the slow intake of new orders, we have seen some cancellations in orders, the bulk of which were for the domestic market. As a result, we have taken steps to reduce costs to improve our competitive position," Glick said.