8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 1, 2008

ROWAN COMPANIES, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-5491	75-0759420
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	file Number)	Identification No.)

2800 POST OAK BOULEVARD
SUITE 5450
HOUSTON, TEXAS	77056-6189
(Address of principal executive offices)	(zip code)

(713) 621-7800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Item 2.02 - Results of Operations and Financial Condition

The following information is disclosed pursuant to Item 2.02 - Results of Operations and Financial Condition:

On May 1, 2008, Rowan Companies, Inc. issued a press release announcing its operating results for the first quarter of 2008. The press release is attached as Exhibit 99.

Item 9.01 - Financial Statements and Exhibits

(c) Exhibits

Exhibit
Number	Exhibit Description
99	Press release of Rowan Companies, Inc. dated May 1, 2008 announcing its operating results for the first quarter of 2008

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

       ROWAN CO MPANIES, INC.

                              By: /s/ W. H. WELLS_________________

        W. H. Wells,

        Vice President - Finance and Chief Financial Officer

Dated: May 1, 2008

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INDEX TO EXHIBITS

Exhibit
Number	Exhibit Description
99	Press release of Rowan Companies, Inc. dated May 1, 2008 announcing its operating results for the first quarter of 2008

 

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EX-99

EXHIBIT 99

News Release

Rowan Companies, Inc.

2800 Post Oak Boulevard, Suite 5450

   Houston, Texas 77056 (713) 621-7800

ROWAN REPORTS FIRST QUARTER 2008 OPERATING RESULTS

FOR IMMEDIATE RELEASE                                                                                                                                      May 1, 2008

HOUSTON, TEXAS – For the three months ended March 31, 2008, Rowan Companies, Inc. (RDC – NYSE) generated net income of $98.6 million or 88¢ per share, compared to $86.4 million or 77¢ per share in the first quarter of 2007 and $138.5 million or $1.23 per share in the fourth quarter of 2007.  Revenues were $485.5 million in the first quarter of 2008, compared to $462.3 million in the first quarter of 2007 and $623.6 million in the fourth quarter of 2007.

The first quarter 2008 results included $5.4 million, or 4¢ per share, of gains on asset sales, compared to $24.1 million, or 14¢ per share, in the prior year period.  There were no significant asset sales in the fourth quarter of 2007.

Rowan’s offshore rig utilization was 91% during the first quarter of 2008, up from 84% in the first quarter of 2007 but down from 97% in the fourth quarter of 2007.  As previously reported, our utilization in the current quarter was adversely impacted by mobilization and shipyard time incurred in preparation for term contracts.  The Company’s average offshore day rate was $159,700 during the first quarter of 2008, up by $16,400 or 11% from the first quarter of 2007, but down by $4,600 or 3% from the fourth quarter of 2007.  Rowan’s land rig utilization was 89% during the first quarter of 2008, compared to 92% in the first quarter of 2007 and 94% in the fourth quarter of 2007.  The Company’s average land rig day rate was $23,200 during the first quarter of 2008, down by $700 or 3% from the first quarter of 2007, but up by $200 or 1% from the fourth quarter of 2007.

Rowan’s drilling operations generated revenues of $340.4 million during the first quarter of 2008, up by 18% from the first quarter of 2007 but down by 9% from the fourth quarter of 2007.  The Company’s income from drilling operations was $143.6 million or 42% of revenues during the first quarter of 2008, up by 14% from the first quarter of 2007, but down by 16% from the fourth quarter of 2007.  The Company’s current backlog of drilling contracts is estimated to be approximately $2.0 billion.

Rowan’s manufacturing operations generated external revenues of $145.1 million during the first quarter of 2008, down by 17% from the first quarter of 2007 and by 42% from the record fourth quarter of 2007.  The Company’s income from manufacturing operations was $4.1 million during the first quarter of 2008, down by 34% from the first quarter of 2007 and by 89% from the fourth quarter of 2007.

Danny McNease, Chairman and Chief Executive Officer, commented, “As we announced two weeks ago, our first quarter operating results were adversely affected by several timing events that we believe will have no impact on the long-term prospects for our drilling and manufacturing businesses.  Our strategic redeployment of assets is continuing, and Rowan’s drilling operations are more geographically diversified than ever before.  Our backlog of revenues is growing in both our manufacturing and drilling businesses, and 80% of Rowan’s drilling backlog is from areas outside the United States.  Our newbuild program is proceeding, with the Rowan offshore fleet set to increase by more than 40% over the next three years.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services.  The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries.  The Company’s stock is traded on the New York Stock Exchange.  Common Stock trading symbol: RDC.  Contact: William C. Provine, Vice-President – Investor Relations, 713-960-7575.  Website: www.rowancompanies.com

This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company.  Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company’s principal operating areas and environmental and other laws and regulations.  Other relevant factors have been disclosed in the Company’s filings with the U.S. Securities and Exchange Commission.

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions)
	MARCH 31
	2008		2007
ASSETS
Cash  and  cash  equivalents	$	288.9	$	420.2
Accounts  receivable		438.4		371.8
Inventories		512.5		394.6
Other  current  assets		66.1		71.0
Total  current  assets		1,305.9		1,257.6
Restricted  cash		-		50.0
Property,  plant  and  equipment  -  net		2,627.0		2,191.7
Other  assets		33.6		55.3
TOTAL	$	3,966.5	$	3,554.6
LIABILITIES  AND  STOCKHOLDERS'  EQUITY
Current  maturities  of  long-term  debt	$	64.9	$	64.9
Accounts  payable		103.8		124.7
Other  current  liabilities		324.2		341.2
Total  current  liabilities		492.9		530.8
Long-term  debt		401.8		466.7
Other  liabilities		618.3		607.1
Stockholders'  equity		2,453.5		1,950.0
TOTAL	$	3,966.5	$	3,554.6

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Millions Except Per Share Amounts)
	THREE MONTHS
	ENDED MARCH 31
	2008			2007
REVENUES	$	485.5		$	462.3
COSTS  AND  EXPENSES:
Operations  (excluding  items  shown  below)		282.7			304.4
Depreciation  and  amortization		33.1			27.6
Selling,  general  and  administrative		27.4			22.4
Gain  on  sale  of  property  and  equipment		(5.4	)		(24.1	)
Total		337.8			330.3
INCOME  FROM  OPERATIONS		147.7			132.0
Net  interest  and  other  income		2.7			0.6
INCOME  BEFORE  INCOME  TAXES		150.4			132.6
Provision  for  income  taxes		51.8			46.2
NET  INCOME	$	98.6		$	86.4
NET  INCOME  PER  DILUTED  SHARE	$	0.88		$	0.77
AVERAGE  DILUTED  SHARES		112.6			111.5

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In Millions)
	THREE MONTHS
	ENDED MARCH 31
	2008			2007
CASH  PROVIDED  BY  (USED  IN):
Operations:
Net income	$	98.6		$	86.4
Adjustments  to  reconcile  net  income  to  net cash  provided  by  (used  in)  operations:
Depreciation  and  amortization		33.1			27.6
Deferred  income  taxes		9.5			10.5
Gain  on  sale  of  assets		(5.4	)		(24.1	)
Other -  net		9.8			9.4
Net  changes  in  current  assets  and  liabilities		(28.9	)		1.2
Net  changes  in  other  noncurrent  assets  and  liabilities		(8.1	)		19.3
Net  cash  provided  by  operations		108.6			130.3
Investing  activities:
Property,  plant  and  equipment  additions		(156.2	)		(69.4	)
Decrease  in  Restricted  cash  balance		50.0			106.1
Proceeds  from  disposals  of  property,  plant  and  equipment		16.7			24.2
Net  cash  provided  by  (used  in)  investing  activities		(89.5	)		60.9
Financing  activities:
Repayments  of  borrowings		(18.7	)		(18.7	)
Payment  of  cash  dividends		(11.1	)		(11.0	)
Proceeds  from  equity  compensation  plans  and  other		15.1			0.7
Net  cash  used  in  financing  activities		(14.7	)		(29.0	)
INCREASE  (DECREASE)  IN  CASH  AND  CASH  EQUIVALENTS		4.4			162.2
CASH  AND  CASH  EQUIVALENTS,  BEGINNING  OF  PERIOD		284.5			258.0
CASH  AND  CASH  EQUIVALENTS,  END  OF  PERIOD	$	288.9		$	420.2

 

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SUPPLEMENTAL  DRILLING  INFORMATION
Unaudited  (dollars  in  millions,  except  where  otherwise  indicated )
			THREE  MONTHS  ENDED
			March 31, 2008				December 31, 2007		March 31, 2007
			$ (a)	Eliminations	$ (b)	% Revenues	$	% Revenues	$	% Revenues
DRILLING  OPERATIONS:
	Revenues		$    340.4		$    340.4	100	$    372.4	100	$    288.3	100
	Operating  costs  (excluding  items  shown  below)		(157.1)	$          0.6	(156.5)	(46)	(154.6)	(42)	(146.8)	(51)
	Depreciation  and  amortization  expense		(29.2)		(29.2)	(9)	(27.1)	(7)	(24.1)	(8)
	Selling,  general  and  administrative  expenses (c)		(16.5)		(16.5)	(5)	(20.8)	(6)	(15.7)	(5)
	Gain  on  sale  of  property  and  equipment		5.4		5.4	2	0.7	0	24.1	8
		Income  from  operations	$    143.0	$          0.6	$    143.6	42	$    170.6	46	$    125.8	44
		EBITDA	$    166.8	$          0.6	$    167.4	49	$    197.0	53	$    125.8	44
OFFSHORE  RIG  DAYS:
	Operating				1,745		1,868		1,587
	Available				1,911		1,932		1,890
		Utilization			91%		97%		84%
LAND  RIG  DAYS:
	Operating				2,358		2,444		2,154
	Available				2,639		2,596		2,352
		Utilization			89%		94%		92%
AVERAGE  DAY  RATES  (in  thousands):
	Gulf  of  Mexico  rigs				$    114.1		$    133.3		$    127.7
	Middle  East  rigs				151.7		152.7		132.4
	North  Sea  rigs				243.8		257.9		213.4
	All  offshore  rigs				159.7		164.3		143.3
	Land  rigs				23.2		23.0		23.9
		(a)  Amounts include effects of intercompany transactions between drilling and manufacturing operations.
		(b)  Amounts exclude effects of intercompany transactions.
		(c)  Amounts include corporate SG&A costs that are allocated between operating segments.
		(d)  EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that we believe is relevant to our
		stockholders.  We measure EBITDA as operating income plus depreciation less gain on sale.

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ROWAN  COMPANIES,  INC.
SUPPLEMENTAL  MANUFACTURING  INFORMATION
Unaudited  (dollars  in  millions)
			THREE  MONTHS  ENDED
			March 31, 2008					December 31, 2007		March 31, 2007
			$ (a)	% Revenues	Eliminations	$ (b)	% Revenues	$	% Revenues	$	% Revenues
MANUFACTURING  OPERATIONS:
	Revenues		$  224.1	100	$      (79.0)	$  145.1	100	$   251.2	100	$   174.0	100
	Operating  costs (excluding  items  shown  below)		(192.2)	(86)	66.0	(126.2)	(87)	(201.2)	(80)	(157.6)	(91)
	Depreciation  and  amortization  expense		(3.9)	(2)		(3.9)	(3)	(5.4)	(2)	(3.5)	(2)
	Selling,  general  and  administrative  expenses (c)		(10.9)	(5)		(10.9)	(8)	(6.3)	(3)	(6.7)	(4)
	Gain  (loss)  on  sale  of  property  and  equipment		-	-		-	-	-	-	-	-
		Income  from  operations	$    17.1	8	$      (13.0)	$      4.1	3	$     38.3	15	$       6.2	4
		EBITDA	$    21.0	9	$      (13.0)	$      8.0	6	$     43.7	17	$       9.7	6
REVENUES:
	Drilling  Products  and  Systems		$  170.1	76	$      (79.0)	$    91.1	63	$   182.3	73	$   120.1	69
	Mining,  Forestry  and  Steel  Products		54.0	24		54.0	37	68.9	27	53.9	31
		Total	$  224.1	100	$      (79.0)	$  145.1	100	$   251.2	100	$   174.0	100
MANUFACTURING  BACKLOG:
	Drilling  Products  and  Systems					$  366.7		$  295.0		$   427.2
	Mining,  Forestry  and  Steel  Products					70.7		53.5		34.3
		Total				$  437.4		$  348.5		$   461.5
		(a)  Amounts include effects of intercompany transactions between manufacturing and drilling operations.
		(b)  Amounts exclude effects of intercompany transactions.
		(c)  Amounts include corporate SG&A costs that are allocated between operating segments.
		(d)  EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that we believe is relevant to our
		stockholders.  We measure EBITDA as operating income plus depreciation less gain on sale.

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