Forum Energy Technologies, Inc. announced second quarter 2013 revenue of $368 million compared to $374 million for the second quarter 2012. Net income for the second quarter 2013 was $30 million or $0.32 per diluted share, including charges of $3 million before tax or $0.02 per diluted share for transaction expenses and foreign exchange losses.
Second Quarter Results by Segment
Drilling & Subsea
Drilling & Subsea revenue in the second quarter 2013 was $209 million, a decrease of $13 million, or 6%, from the second quarter 2012. The Drilling Technologies product line revenue decreased compared to the second quarter 2012 on a decline in the North America land rig count. The Subsea Technologies product line revenue increased modestly over the second quarter 2012. The Downhole Technologies product line revenue increased compared to the prior year period primarily due to the acquisition of Wireline Solutions and strong demand for its drillable composite frac plugs.
Production & Infrastructure
Production & Infrastructure revenue in the second quarter 2013 was $159 million, an increase of $8 million, or 5%, over the second quarter 2012. The Production Equipment and Valve Solutions product lines had double digit revenue growth over the prior year period on strong demand for production and processing systems, and for valves from the petrochemical and refining industries. The Flow Equipment product line second quarter 2013 revenue was down from the high levels in the 2012 period due to the reduced demand in the pressure pumping sector.
Review and Outlook
Cris Gaut, Chairman and Chief Executive Officer of Forum, remarked, “ Our second quarter 2013 results were little changed from our first quarter results due primarily to the relatively flat U.S. land rig count and a slower seasonal recovery in Canada.
“Forum’s Production Equipment and Downhole Technologies product lines generated record revenue in the second quarter 2013 on improved well completion activity.
“Although the Drilling Technologies product line experienced weaker than expected results, orders increased significantly for both capital equipment and consumable products for the second consecutive quarter. Much of the increase in orders was for international markets with long lead times that did not impact revenue in the second quarter.
“We are not planning for any increase in the U.S. land rig count during the second half of 2013. In addition, we continue to see pricing pressure for certain products within Drilling Technologies and Flow Equipment.
“Forum expects diluted earnings per share for the third quarter 2013 of $0.40 to $0.45, and for the full year 2013 of $1.55 to $1.65.
“We are pleased with the recent additions of Blohm + Voss Oil Tools, Moffat 2000, and Global Tubing to Forum, which will begin to contribute to our results in the third quarter.”
Recent Acquisitions
Blohm + Voss Oil Tools, with locations in Hamburg, Germany and Willis, Texas, manufactures a comprehensive range of pipe handling equipment used on offshore and onshore drilling rigs worldwide.
Moffat, based in Newcastle, England, is a leading manufacturer of subsea pipeline inspection launching and receiving systems, and subsea connectors.
Global Tubing, located in Dayton, Texas, provides coiled tubing strings and related services to customers worldwide. Global Tubing’s high-quality coiled tubing strings are critical consumable components of coiled tubing units that perform an increasing number of well completion and intervention activities. Forum acquired Global Tubing in equal partnership with Quantum Energy Partners.
[mappress] Press Release, July 26, 2013