UPDATE 2-Cameron profit up as order books grow, shares jump

Thu Jul 28, 2011 10:52am EDT

* Q2 EPS excluding items 66 cents vs Street view 64 cents

* Revenue up 20 percent to $1.74 billion

NEW YORK/SAN FRANCISCO, July 28 (Reuters) - New orders for Cameron International Corp (CAM.N) led to an unexpectedly large rise in profit, prompting the U.S. oilfield equipment and services company to raise its 2011 forecast.

Cameron shares rose nearly 9 percent to $55 in early trading on Thursday, hitting their highest levels in almost three months.

New orders rose 72 percent to $2.4 billion, above a $1.65 billion estimate from Barclays Capital analyst James West because of strong demand from offshore drillers.

Chief Executive Jack Moore said 2011 might be a record bookings year. As for blowout preventers, he said that on top of those needed for newly built rigs, many operators wanted to upgrade as regulations tighten after last year's Gulf of Mexico spill -- which involved a Cameron blowout preventer.

"We are seeing it globally as well. It's not just a U.S. phenomenon," Moore told analysts on a conference call. "The operators are driving the upgrades."

Moore said he sees potential for more rigs to have a backup blowout preventer to ensure continuous operations while the other one undergoes inspections or maintenance.

Second-quarter net income rose to $148 million, or 59 cents per share, from $129.2 million, or 52 cents per share, a year earlier. Excluding items, it earned 66 cents per share, compared with the average analyst estimate of 64 cents, according to Thomson Reuters I/B/E/S.

Revenue rose 20 percent to $1.74 billion, compared with the average analyst estimate of $1.65 billion.

Cameron raised its full-year profit forecast range by 5 cents to $2.55 to $2.65 per share.

On Monday, underwater drilling equipment rival FMC Technologies Inc (FTI.N) reported profit that beat Wall Street estimates, and said its backlog grew by 9 percent. [ID:nN1E76O1MB] (Reporting by Matt Daily in New York and Braden Reddall in San Francisco. Editing by Gerald E. McCormick and Robert MacMillan)

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