HOUSTON — Oilfield equipment maker Cameron International Corp. said Thursday that first-quarter profit fell due to cost overruns on a subsea project and sanctions involving Libya operations.
The results missed analysts’ expectations, and the company offered a forecast of second-quarter earnings below forecasts and lowered its full-year outlook.
Its shares dropped $2.02, or 3.7 percent, to $52.42 in afternoon trading.
The company said net income fell to $109.5 million, or 43 cents per share, for the three months ended March 31 compared with $120.4 million, or 48 cents per share, a year earlier. The results included charges of 3 cents per share, mostly related to legal costs from the Gulf oil spill.
Cameron made the device called a blow-out preventer that failed to cut off BP PLC’s well last year, leading to the Gulf of Mexico oil spill.
Analysts, who usually exclude one-time items from forecasts, had expected earnings of 57 cents per share, according to FactSet.
The company had already announced charges totaling $43.9 million, or 17 cents per share, due to cost overruns on a subsea project and the Libya sanctions, which the Cameron CEO called “the risks of doing business in emerging countries.”
Revenue rose 11 percent to $1.5 billion from $1.35 billion a year ago. But that was below analysts’ forecast of $1.63 billion.
Cameron said orders increased by more than 25 percent to $1.52 billion, compared with $1.21 billion in the first quarter of last year.
The company said adjusted earnings would be 60 to 65 cents per share in the second quarter, and between $2.50 and $2.60 per share — a reduction of 15 cents — for all of 2011.
Analysts were expecting 66 cents per share in the second quarter and $2.69 per share for the year.