Diving: Lufkin profit down for the quarter.
Lufkin profits take a dive
Oilfield equipment manufacturer Lufkin Industries posted a 79% slump in second-quarter profit as it was hurt by a drop in bookings at its oilfield and power transmission units.
Lufkin warned that uncertain energy markets and economy posed a short to mid-term risk to its operations, but remained optimistic about an improvement in the second half of this year.
For the quarter, the Lufkin, Texas-based company reported net income of $4.4 million, or 30 cents per share, down from $21.2 million, or $1.42, a year earlier.
Excluding an 8 cents-a-share impact related to a lawsuit against the company, Lufkin earned 40 cents a share from continuing operations.
Revenue fell 29% to $123.7 million.
Analysts, on average, expected earnings, before special items, of 42 cents a share, on revenue of $119 million, according to Reuters Estimates.
Lufkin's combined order backlog during the quarter slid 48% to $162.3 million.
New business bookings at its oil field unit dropped 83%.
"We felt the full brunt of the decline in commodity prices and the depressed global economy... A number of international projects continue to be deferred while some North American projects continue to be cancelled altogether, particularly by the majors," boss John Glick said in a Reuters report.