Lufkin Industries Reports Earnings of $1.34 Per Diluted Share For Fourth Quarter 2007
Lufkin Industries Reports Earnings of $1.34 Per Diluted Share For Fourth Quarter 2007 Thursday February 14, 7:00 am ET Oil Field Bookings Drive Total Backlog to $202 Million
LUFKIN, Texas, Feb. 14 /PRNewswire-FirstCall/ -- Lufkin Industries, Inc. (Nasdaq: LUFK - News) today announced financial results for the fourth quarter and twelve months ended December 31, 2007. Sales were $157.7 million for the fourth quarter compared with $165.6 million for the fourth quarter of 2006. Net earnings for the fourth quarter of 2007 were $19.9 million, or $1.34 per diluted share, compared with $23.0 million, or $1.52 per diluted share, for the fourth quarter of 2006, which included a net benefit of $0.26 per diluted share from the finalization of various tax estimates and tax initiatives and estimated costs related to exiting the trailer van business.
Sales for 2007 were $597.2 million compared with $605.5 million for 2006. Net earnings rose to $74.2 million, or $4.92 per diluted share, from $73.0 million, or $4.83 per diluted share, for 2007, including the net benefit of $0.26 per diluted share discussed above.
Douglas V. Smith, chief executive officer of Lufkin, remarked, "Lufkin's financial performance for the fourth quarter, as well as its record earnings for all 2007, reflected the continued strong sales growth and margin expansion in our power transmission business. For the quarter, these results, driven by high ongoing worldwide energy demand, again more than offset the impact of a soft but improved oil field sales environment in North America and lower sales in our trailer business. In addition, our power transmission backlog expanded for the eighth consecutive quarter to a new record of $122.2 million at the end of 2007. With continued substantial growth in international oil field bookings for fourth quarter of 2007 compared with the third quarter, we also produced a 20.7% sequential-quarter increase in our oil field backlog at year end. This expansion primarily accounted for a 5.2% sequential-quarter increase in our total backlog, to $202.5 million at year end, which supports our cautious optimism regarding our prospects for profitable growth for 2008.
"Fourth-quarter sales for our oil field business were $106.3 million, a 1.9% decline from the fourth quarter of 2006 and a 10.0% increase from the third quarter of 2007. The comparable-quarter performance was consistent with the 1.0% decline in oil field sales for 2007 versus 2006, which, as we have discussed throughout the year, was attributable to soft pumping equipment sales in North America. We were very pleased with the strong growth in our international pumping equipment sales throughout 2007, as well as increased service and automation sales, which largely offset a 23.3% reduction in North American bookings for pumping equipment for 2007 versus 2006.
"In this context, we are encouraged by the improved momentum in fourth- quarter bookings for North America, up 29.9% from the third quarter, which were primarily accountable for the sequential-quarter increase in oil field sales. We also again produced significant sequential-quarter growth in international bookings for the fourth quarter, which drove the growth in our oil field backlog to $76.9 million at year end, an increase of 14.5% over year-end 2006 and 20.7% over the end of the third quarter of 2007.