Natco bookings buck earnings
US wellhead process machinery maker NATCO Group Monday afternoon said its second quarter 2002 revenue and net income stood at $74.4 million and $1.1 million compared to $82.6 million and $0.5 million in the year-ago period.
Earnings in the current quarter included currency transaction losses, primarily in the UK, of $0.2 million net of tax. Prior year earnings included an unusual charge of $0.9 million net of tax.
The company's EBITDA for the quarter -- defined as gross profit less selling, general and administrative expense -- was $4.6 million compared to $6.7 million in the second quarter of 2001.
Chairman and chief executive Nat Gregory said: "Revenue and earnings for the current quarter were lower than last year's quarter primarily due to a continuation of the soft market conditions experienced by the industry over the past year. However, bookings for the quarter exceeded $100 million and drove our backlog up to $103.7 million -- a record level."
Gregory noted bookings included two large projects in west Africa, as well as a number of processing systems in the North Sea, Middle East, North and South America.
In North American operations, quarterly revenues declined 12% compared to the prior year second quarter, reflecting the overall downturn in US and Canadian oilfield activity. Gross margins as a percentage of revenue in the segment were modestly higher, while operating expenses were roughly flat year-over-year.