Cameron profits tumble 43 percent

Cameron International’s profits slipped 43 percent in the fourth quarter as the company brought in less revenue and took on charges related to assets and severance pay.

The Houston-based oil tool maker, which is being acquired by oil field services giant Schlumberger, posted $149 million in net income or 65 cents per share during the three-month period ending Dec. 31. That’s down from $262 million, or $1.30 per share, from the same time a year ago.

Cameron once again delivered very strong operating results in the face of a continued downturn in the energy markets,” CEO Scott Rowe said in a statement. “The Company’s performance was driven by accelerated progress in the transformation of our cost structure and strong execution.”

Some segments continued to show strength despite the downturn.

Cameron’s subsea business posted an 85 percent increase in operating income despite lower revenues, as the company executed several late-stage projects, took on a greater mix of services-related work and boosted its segment orders by 27 percent from the year prior. But the pullback in oil field activity was reflected in other product lines, including its surface, drilling and valves and measurements segments.

During a year in which oil companies retreated from projects both onshore and offshore, Cameron’s annual revenue tumbled 15 percent from $10.4 billion in 2014 to $8.8 billion in 2015.

As the oil bust bleeds over into 2016, Cameron expects to see more negative impacts this year, the company is bracing for the declines by focusing on executing projects, maintaining good rapport with customers, reducing costs and embracing technology, “factors that will drive our fundamental long-term performance,” Rowe said in a statement.

The merger with Schlumberger remains on track to close in the first quarter of 2016, Cameron said.

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