HOUSTON ( TheStreet) -- Profit slipped a whopping 87%. Revenue fell 22%.

The numbers just weren't pretty for oil and gas drilling servicer Smith International ( SII). Striking declines in natural gas production and exploration in North America, along with pricing pressures, served as a backdrop as the company missed on most profit and sales estimates.

And investors decided to pile on, sending shares of Smith plunging 7% in midday trading.

On Tuesday, Smith said net income fell to $24.4 million, or 11 cents per share, compared to the year-ago period when the Houston-based company posted a profit of $183.3 million, or 91 cents per share.

After excluding certain charges, Smith said earnings would have come to 15 cents per share.

Revenues shrank to $1.94 billion from $2.49 billion in the year-earlier quarter.

"Our second quarter results reflect the unprecedented collapse in North American drilling activity which has led to lower volumes and a very competitive pricing environment," CEO John Yearwood said in a press release. "While we believe it's unlikely that natural gas fundamentals will support U.S. activity growth in the back half of 2009, we do believe pricing in our oilfield-related product lines has stabilized."

Earlier in the day, National Oilwell Varco ( NOV) said its second quarter profit fell by 48%.

Shares of National were also changing hands down 4.6%, or $1.72, at $35.72

Others in the services arena weren't doing much better in the afternoon today. Baker Hughes ( BHI) was slipping 3.7%, while Cameron International ( CAM) was losing 5.5%.

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