Lufkin Says 1Q Profit Dropped, Makes Job Cuts

LUFKIN, Texas (AP) — Lufkin Industries Inc. on Wednesday reported its profit slid 43 percent in the first quarter due to lower commodity prices. The oilfield services and equipment company also said it has cut jobs and spending.

First-quarter profit fell to $9 million, or 60 cents per share, from $15.6 million, or $1.05 per share, in the year-ago period.

Excluding a provision of 13 cents per share for a class-action lawsuit against the company and a loss of a penny per share from discontinued operations, Lufkin earned 74 cents per share in the latest period.

Analysts expected profit of $1.42 per share, according to a Thomson Reuters survey.

Revenue grew 9 percent to $153.1 million from $141.1 million. Revenue from the oil field business rose 11 percent to $111.7 million in the period, and power transmission revenue edged up 3 percent to $41.5 million.

Lufkin President and Chief Executive John Glick said the first quarter was one of the most difficult in several years, as the recession led to lower oil prices, and U.S. markets were particularly weak during the quarter. Contract bookings decreased compared to the previous quarter, and to the first quarter of 2008.