Just as a reminder, remarks we make during the course of the call regarding our earnings guidance, business strategy, plans for future operations and industry conditions are forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
And I'm now going to turn the call over to Kevin.
M. Kevin McEvoy
Good morning, and thanks for joining the call. I'm happy to be here with you today to review our Q2 results and second half outlook.Our record second quarter EPS of $0.67 was up 43% over the first quarter of this year, and up 29% compared to the second quarter of 2011. As expected, operating income margin improved sequentially in each of our operating segments. We achieved best-ever quarterly ROV and Asset Integrity in operating income. Year-over-year and sequentially, all of our business segments achieved higher operating income led by ROVs, Subsea Projects and Asset Integrity.We are well-positioned to participate in the next growth stage of deepwater and subsea completion activity, and our outlook for 2012 remains very positive. We continue to believe we will achieve record results for the year and are narrowing our 2012 EPS guidance range to $2.55 to $2.65. Our previous guidance was $2.45 to $2.65. So the new guidance is up slightly at the midpoint. Compared to the first half, we anticipate achieving higher operating income during the second half of 2012, principally due to the ROV and Subsea Products businesses.ROV profits are expected to be up on an increasing days on hire in most operating areas, notably in the Gulf of Mexico and off Africa, and a slightly higher operating margin as we benefit from the additional days work and a favorable change in geographic mix. For Subsea Products, we are forecasting profit improvements for each of our major product lines during the second half of the year, led by higher demand for our Subsea Hardware. For the year, we continue to forecast higher operating income for all of our segments relative to 2011.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV