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TheStreet Open House

Cameron International's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Our outlook for 2012 is very similar to that of 2011. Our customers' commitment to OEM is not backing off and we continue to see a healthy appetite for newbuild rigs given the high utilization rates our customers are seeing. Plus with the added benefits of Cameron having acquired LTI in Q4, we expect 2012 to be another record year for Drilling Systems. In fact, we've already booked several floater stacks in the current quarter.

LTI provided Cameron a wonderful platform to offer a broader scope of products and services to both onshore and offshore contractors, along with shipyards. But we have work to do. Under Cameron's management, we will provide the objective product development and sales placement that it lacked with the previous owners. We will focus on external opportunities that will allow us to close the technology and product gaps. We will improve the manufacturing processes and we'll improve lead times and margins. We will place a premium on servicing the existing install base to our global aftermarket footprint.

We've had tremendous support from our customers' employees for building out the Cameron Drilling Systems portfolio, and we're excited that this will move the needle for Cameron for many years to come.

In addition to the focus with integrating LTI in 2012, we will continue to advance the technologies that our customers will demand as we push drilling into deeper and higher pressure applications while staying focused on safe operations. We recently delivered the world's first 13.58 25,000 psi BOP system. We started last year, completion of the first ever 18.75 20,000 psi BOP system that is operating offshore today.

And finally, we will invest in additional $80 million in 2012, in our aftermarket infrastructures to support and sustain our customers' demand for OEM service. The highlight will be the opening of our new dedicated drilling aftermarket base in Singapore's Offshore Marine Centre later this year.

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