Work cut out: Lufkin reports drop in profits despite cut in workforce
Lufkin profits drop 30%
Manufacturer Lufkin Industries reported a 30% drop in quarterly profit and said it reduced its workforce by 10% today while forecasting a stabilisation in demand in the second half of the year.
"Bookings in both our oilfield and power transmission divisions were down significantly....Several international projects were reduced in size and several were postponed, which further impacted bookings during the quarter," chief executive John Glick said in a statement.
Excluding the impact of a lawsuit, the company reported first-quarter profit of $11 million, or 74 cents a share, down from $15.6 million, or $1.05 a share, a year earlier.
Including the 13 cents a share impact of the lawsuit, the Texas-based company reported a quarterly profit of $9.1 million, or 61 cents a share.
Revenue rose 8% to $153.1 million during the quarter.
Lufkin's backlog fell 11% to $208 million.