Date of Report (Date of earliest event reported):
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April 28, 2011
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Delaware
___________________
(State or other
jurisdiction of
incorporation)
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1-13884
_________________
(Commission
File Number)
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76-0451843
___________________
(I.R.S. Employer
Identification No.)
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1333 West Loop South, Suite 1700,
Houston, Texas
________________________________________
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77027
_______________
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(713) 513-3300
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit
Number
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Exhibit Title or Description
|
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Exhibit 99.1
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Press Release of Cameron International Corporation, dated April 28, 2011 – Cameron First Quarter Earnings Per Share $0.46, Excluding Charge of $0.03 Per Share
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CAMERON INTERNATIONAL CORPORATION
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|
By: /s/ Charles M. Sledge
|
|
Charles M. Sledge
|
|
Senior Vice President and Chief Financial Officer
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Exhibit
Number
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Exhibit Title or Description
|
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Exhibit 99.1
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Press Release of Cameron International Corporation, dated April 28, 2011 – Cameron First Quarter Earnings Per Share $0.46, Excluding Charge of $0.03 Per Share
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·
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Previously announced charges for subsea project and accounts receivable incorporated into operating results
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·
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Quarter’s earnings total $0.43 per share, including charge, versus $0.48, including charges, in first quarter of 2010
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·
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Orders exceed $1.5 billion, backlog increases over year-end levels
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·
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Full-year 2011 earnings guidance adjusted to reflect first quarter charges, now $2.50 to $2.60 per share
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Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
Revenues:
|
||||||||
Drilling & Production Systems(1)
|
$ | 865.7 | $ | 819.8 | ||||
Valves & Measurement
|
339.9 | 299.0 | ||||||
Process & Compression Systems(1)
|
295.7 | 227.9 | ||||||
Total revenues
|
1,501.3 | 1,346.7 | ||||||
Costs and Expenses:
|
||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
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1,057.9 | 914.1 | ||||||
Selling and administrative expenses
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229.7 | 196.7 | ||||||
Depreciation and amortization
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44.8 | 48.1 | ||||||
Interest, net
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20.1 | 17.0 | ||||||
Other costs
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8.9 | 10.3 | ||||||
Total costs and expenses
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1,361.4 | 1,186.2 | ||||||
Income before income taxes
|
139.9 | 160.5 | ||||||
Income tax provision
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(30.4 | ) | (40.1 | ) | ||||
Net income
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$ | 109.5 | $ | 120.4 | ||||
Earnings per common share:
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||||||||
Basic
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$ | 0.45 | $ | 0.49 | ||||
Diluted
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$ | 0.43 | $ | 0.48 | ||||
Shares used in computing earnings per common share:
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||||||||
Basic
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244.7 | 244.4 | ||||||
Diluted
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252.1 | 249.0 | ||||||
EBITDA:
|
||||||||
Drilling & Production Systems(1)
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$ | 140.6 | $ | 179.0 | ||||
Valves & Measurement
|
65.3 | 59.1 | ||||||
Process & Compression Systems(1)
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38.8 | 28.3 | ||||||
Corporate and other(2)
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(39.9 | ) | (40.8 | ) | ||||
Total
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$ | 204.8 | $ | 225.6 |
1
|
Prior period segment data has been retrospectively revised to reflect the change in segments during the third quarter of 2010.
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2
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Corporate EBITDA amounts include $8.9 million and $10.3 million of other costs during the three months ended March 31, 2011 and 2010, respectively.
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Cameron
|
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Consolidated Condensed Balance Sheets
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($ millions)
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March 31,
2011
|
December 31,
2010
|
|||||||
(unaudited)
|
||||||||
Assets:
|
||||||||
Cash and cash equivalents
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$ | 1,449.6 | $ | 1,832.5 | ||||
Receivables, net
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1,099.9 | 1,056.1 | ||||||
Inventories, net
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1,985.2 | 1,779.3 | ||||||
Other
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285.1 | 265.0 | ||||||
Total current assets
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4,819.8 | 4,932.9 | ||||||
Plant and equipment, net
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1,306.8 | 1,247.8 | ||||||
Goodwill
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1,511.1 | 1,475.8 | ||||||
Other assets
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345.8 | 348.6 | ||||||
Total Assets
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$ | 7,983.5 | $ | 8,005.1 | ||||
Liabilities and Stockholders’ Equity:
|
||||||||
Current portion of long-term debt
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$ | 519.3 | $ | 519.9 | ||||
Accounts payable and accrued liabilities
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1,798.4 | 2,016.0 | ||||||
Accrued income taxes
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9.0 | 38.0 | ||||||
Total current liabilities
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2,326.7 | 2,573.9 | ||||||
Long-term debt
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777.9 | 772.9 | ||||||
Deferred income taxes
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105.0 | 95.7 | ||||||
Other long-term liabilities
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169.3 | 170.2 | ||||||
Total liabilities
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3,378.9 | 3,612.7 | ||||||
Stockholders’ Equity:
|
||||||||
Common stock, par value $.01 per share, 400,000,000 shares authorized, 263,111,472 shares issued at March 31, 2011 and December 31, 2010
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2.6 | 2.6 | ||||||
Capital in excess of par value
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2,257.0 | 2,259.3 | ||||||
Retained earnings
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2,957.8 | 2,848.3 | ||||||
Accumulated other elements of comprehensive income (loss)
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49.1 | (27.1 | ) | |||||
Less: Treasury stock, 18,111,709 shares at March 31, 2011 (19,197,642 shares at December 31, 2010)
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(661.9 | ) | (690.7 | ) | ||||
Total stockholders’ equity
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4,604.6 | 4,392.4 | ||||||
Total Liabilities and Stockholders’ Equity
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$ | 7,983.5 | $ | 8,005.1 |
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Cameron
|
|
Unaudited Consolidated Condensed Statements of Cash Flows
|
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($ millions)
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Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
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$ | 109.5 | $ | 120.4 | ||||
Adjustments to reconcile net income to net cash used for operating activities:
|
||||||||
Depreciation
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34.6 | 33.8 | ||||||
Amortization
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10.2 | 14.3 | ||||||
Non-cash stock compensation expense | 8.1 | 12.0 | ||||||
Tax benefit of employee stock compensation plan transactions and deferred income taxes
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18.7 | (5.4 | ) | |||||
Changes in assets and liabilities, net of translation, acquisitions and non-cash items:
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||||||||
Receivables
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(31.6 | ) | 59.9 | |||||
Inventories
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(173.4 | ) | (44.0 | ) | ||||
Accounts payable and accrued liabilities
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(249.3 | ) | (227.8 | ) | ||||
Other assets and liabilities, net
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(53.6 | ) | (79.0 | ) | ||||
Net cash used for operating activities
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(326.8 | ) | (115.8 | ) | ||||
Cash flows from investing activities:
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||||||||
Capital expenditures
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(61.9 | ) | (29.8 | ) | ||||
Acquisitions, net of cash acquired
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(27.6 | ) | (27.9 | ) | ||||
Proceeds from sale of plant and equipment
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6.7 | 2.9 | ||||||
Net cash used for investing activities
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(82.8 | ) | (54.8 | ) | ||||
Cash flows from financing activities:
|
||||||||
Short-term loan borrowings (repayments), net | (2.0 | ) | (16.5 | ) | ||||
Purchase of treasury stock
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– | (39.8 | ) | |||||
Proceeds from stock option exercises, net of tax payments from stock compensation plan transactions
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15.8 | (6.5 | ) | |||||
Excess tax benefits from employee stock compensation plan transactions
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4.7 | 3.8 | ||||||
Principal payments on capital leases
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(1.8 | ) | (1.6 | ) | ||||
Net cash (used for) provided by financing activities
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16.7 | (60.6 | ) | |||||
Effect of translation on cash
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10.0 | (10.8 | ) | |||||
Decrease in cash and cash equivalents
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(382.9 | ) | (242.0 | ) | ||||
Cash and cash equivalents, beginning of period
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1,832.5 | 1,861.0 | ||||||
Cash and cash equivalents, end of period
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$ | 1,449.6 | $ | 1,619.0 |
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Cameron
|
|
Orders and Backlog
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($ millions)
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|
Orders
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Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
Drilling & Production Systems(1)
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$ | 818.3 | $ | 534.0 | ||||
Valves & Measurement
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427.5 | 401.1 | ||||||
Process & Compression Systems(1)
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276.6 | 275.9 | ||||||
Total
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$ | 1,522.4 | $ | 1,211.0 |
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Backlog
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March 31,
2011
|
December 31,
2010
|
March 31,
2010
|
||||||||||
Drilling & Production Systems(1)
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$ | 3,183.0 | $ | 3,195.9 | $ | 3,682.0 | ||||||
Valves & Measurement
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937.3 | 833.8 | 642.3 | |||||||||
Process & Compression Systems(1)
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772.4 | 787.4 | 651.9 | |||||||||
Total
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$ | 4,892.7 | $ | 4,817.1 | $ | 4,976.2 |
1
|
Prior period segment data has been retrospectively revised to reflect the change in segments during the third quarter of 2010.
|
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Cameron
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
|
|
($ millions)
|
Three Months Ended March 31, 2011
|
||||||||||||||||||||
Drilling &
Production
Systems
|
Valves &
Measurement
|
Process &
Compression
Systems
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 116.3 | $ | 55.2 | $ | 30.6 | $ | (62.2 | )1 | $ | 139.9 | |||||||||
Depreciation & amortization
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24.3 | 10.1 | 8.2 | 2.2 | 44.8 | |||||||||||||||
Interest, net
|
– | – | – | 20.1 | 20.1 | |||||||||||||||
EBITDA
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$ | 140.6 | $ | 65.3 | $ | 38.8 | $ | (39.9 | ) 1 | $ | 204.8 |
1
|
Corporate loss before income taxes and EBITDA amounts include $8.9 million of other costs.
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Three Months Ended March 31, 2010
|
||||||||||||||||||||
Drilling &
Production
Systems(2)
|
Valves &
Measurement
|
Process &
Compression
Systems(2)
|
Corporate
|
Total
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 156.6 | $ | 48.9 | $ | 15.5 | $ | (60.5 | ) 3 | $ | 160.5 | |||||||||
Depreciation & amortization
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22.4 | 10.2 | 12.8 | 2.7 | 48.1 | |||||||||||||||
Interest, net
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– | – | – | 17.0 | 17.0 | |||||||||||||||
EBITDA
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$ | 179.0 | $ | 59.1 | $ | 28.3 | $ | (40.8 | ) 3 | $ | 225.6 |
2
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Prior period segment data has been retrospectively revised to reflect the change in segments during the third quarter of 2010.
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3
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Corporate loss before income taxes and EBITDA amounts include $10.3 million of other costs.
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