Smith International Revenue Surges

Earnings rise.
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Smith International

(SII)

, a supplier of products and services to the oil and gas exploration and production industry, and petrochemical industry, said its third-quarter earnings rose 67.19% from the year-ago period, helped by improved pricing, the seasonal recovery in Canadian drilling activity and increased business volumes.

The company earned $132.9 million, or 66 cents a share, in the quarter, compared with $79.5 million, or 39 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 62 cents a share.

Third-quarter revenue rose 35.7% from a year ago to $1.91 billion as against analysts' estimate of $1.83 billion.

The Houston-based company expects to earn $2.45 a share to $2.50 a share for the full year as against analysts' expectation of $2.40 a share.

Third-quarter operating income rose 67.85% from a year ago to $287.7 million and operating margin increased 288 basis points to 15.03%.

By segment, second-quarter operating income for M-I SWACO's segment rose 39.05% from a year ago to $942.2 million while revenue from Smith Technologies increased 33.02% to $205.45 million. Year-ago revenue from Smith Services jumped 48.72% to $265.3 million and in Wilson segment it rose 25.4% to $501.25 million.

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