Lufkin Industries Reports Results for First Quarter 2008
Lufkin Industries Reports Results for First Quarter 2008 Wednesday April 16, 7:15 am ET Strong Growth in Oil Field and Power Transmission Bookings Increases Total Backlog to $235.7 Million
LUFKIN, Texas, April 16 /PRNewswire-FirstCall/ -- Lufkin Industries, Inc. (Nasdaq: LUFK - News) today announced financial results for the first quarter ended March 31, 2008. Sales were $147.0 million compared with $148.1 million for the first quarter of 2007. Net earnings for the first quarter of 2008 were $15.6 million, or $1.06 per diluted share. These results include a positive $0.05 per diluted share impact related to the run-out of trailer inventories that was not included in the Company's guidance for first quarter earnings per diluted share in a range of $0.90 to $1.00. For the first quarter of 2007, net earnings were $17.8 million, or $1.17 per diluted share.
John F. (Jay) Glick, president and chief executive officer of Lufkin, commented, "Lufkin's first quarter financial results represent a very solid beginning to 2008, as high global demand for energy drove activity in our core oil field and power transmission markets. Importantly, we experienced a significant rebound in bookings for oil field equipment in North America, complementing our continued growth in international oil field markets. In addition, bookings in our power transmission business have remained strong, both domestically and internationally. As a result, the combined backlog of these businesses increased 45.2% to $234.7 million compared with the first quarter last year, while growing 17.9% from the end of 2007. Including results from our trailer business, in which, as announced in January, we are suspending our participation, our backlog increased to $235.7 million at the end of the first quarter, up 32.8% and 16.4% from the end of the first and fourth quarters of 2007.
"Oil field sales for the first quarter of 2008 were $100.9 million, compared with $101.3 million for the first quarter of 2007 and $106.3 million for the fourth quarter last year. These sales generally met our expectations, reflecting normal first quarter seasonality, continued solid growth in international pumping equipment sales, and North American pumping sales that, while improving from levels experienced in the second and third quarters last year, were below the first quarter of 2007. The increasing momentum in the North American oil field market for pumping equipment is more readily apparent in the 67.2% growth in the segment backlog to $97.1 million at the end of the latest quarter from the end of the first quarter of 2007 and the 26.3% sequential quarter growth in backlog. Also contributing to increased bookings for the first quarter, we have continued to expand our oil field automation and services businesses in North America and abroad.
"Lufkin's power transmission business produced sales of $40.2 million for the first quarter of 2008, up 19.2% from the first quarter of 2007 and down 7.6% from the fourth quarter of 2007. The