Lufkin 3Q profit jumps 82 pct, cuts year view

Lufkin profit jumps 82 percent, but cuts view for year as large customers trim spending

Associated Press

LUFKIN, Texas (AP) -- Lufkin Industries Inc. said Monday its third-quarter net income jumped 82 percent, helped by contributions from acquisitions and steady demand in North America.

But the company, which sells oil pumping units and other equipment for energy companies, as well as transmission products, warned that because of the drop in oil prices in recent weeks, several of its large customers have scaled back their spending. As a result, the company said it expects bookings and activity to slow in the current quarter.

In the July-September quarter, Lufkin earned $26.3 million, or 78 cents per share, up from $14.4 million, or 47 cents per share, in the same quarter last year. The year-ago period included charges of 12 cents per share for two acquisitions.

Revenue rose 47 percent to $340.3 million from $231.7 million.

In the most recent quarter, the company's oilfield business got a boost from another acquisition earlier this year, Zenith, along with gains from the Quinn's business, acquired last year. Quinn's sells pumps and other equipment, while Zenith's products help companies monitor oilfield data.

Looking forward, Lufkin expects to post a fourth-quarter profit of 80 cents to 90 cents per share on $340 million to $350 million in revenue. The company cut its full-year profit production to $2.81 to $2.91 per share, excluding one-time items, from its July prediction of $3 to $3.20 per share. Analysts expect $3 per share.

The company also narrowed its revenue guidance for the year to a range of $1.26 billion to $1.27 billion. It previously predicted revenue of $1.25 billion to $1.27 billion.

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