DOW JONES NEWSWIRES
BJ Services Co.'s (BJS) fiscal first-quarter net income dropped
13% despite increased revenue as margins were hurt by lower
commodity prices, which are expected to dampen oil-and-gas drilling
activity.
Chairman and Chief Executive Bill Stewart noted the expectations
for lower U.S. drilling activity this year, saying the company is
"taking appropriate measures" including cutting capital spending by
20% to 25% this year.
The supplier of pumps and piping services to the energy industry
reported net income of $149.2 million, or 51 cents a share for the
quarter ended Dec. 31, down from $172.2 million, or 58 cents a
share, a year earlier. The company in October projected 48 cents to
51 cents. The latest quarter included a 5-cent pension charge.
Revenue rose 11% to $1.43 billion from $1.3 billion, mathching
analysts' expectations.
Operating margins fell to 15.4% from 19.7%.
Oilfield-services revenue increased 13%, led by the completion
fluids segment which benefitted from increased fluid sales in
Mexico. The U.S. and Mexican pressure pumping operations reported a
10% increase as higher volumes more than offset lower prices,
though the latter hurt margins.
Schlumberger Ltd (SLB), the first oilfield-services company to
report results Friday, posted its first year-on-year decline in
quarterly net income since 2003, noting that producers are slashing
spending on oilfield services faster and deeper than in past
downturns.
BJ shares closed at $11.92 on Wednesday, and there was no
pre-market trading. The stock has fallen two-thirds the past six
months.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
Order free Annual Report for Russ Berrie and Company, Inc.
Visit http://djnewswires.ar.wilink.com/?link=RUS or call
1-888-301-0513
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.