Dril-Quip's 1st-qtr Profit Edges Down 3 Pct

HOUSTON (AP) — Dril-Quip Inc., which makes offshore drilling equipment, said Friday its first-quarter earnings slipped 3 percent, hurt by lower revenue from rig and surface equipment.

For the three months ended March 31, the company reported net income of $24.7 million, or 63 cents per share, down from $25.4 million, or 62 per share, in the year-earlier period.

Revenue declined 4 percent to $127.5 million from $132.4 million in the same period in 2008. Dril-Quip attributed the lower overall revenue to a $12 million drop in revenue related to offshore rig and surface equipment. That was offset by higher revenue of $4.9 million for sub-sea equipment and $2.2 million for services.

Operating income totaled about $34.7 million in both periods.

Analysts polled by Thomson Reuters, on average, expected profit of 62 cents on revenue of $137 million. Those estimates generally exclude one-time items.

The company said its backlog as of March 31 was about $573 million, up from about $438 million a year earlier.

Dril-Quip said it expects earnings of 58 cents to 68 cents per share for the quarter ending June 30, excluding special charges. Wall Street analysts expect a profit of 63 cents per share in the second quarter.

Shares of Dril-Quip rose $3.21, or 9.2 percent, to $40.31 in midday trading Friday.