April 26 National Oilwell Varco Inc, the
largest U.S. oilfield equipment provider, reported a
larger-than-expected decline in quarterly profit as margins were
squeezed and the North American market was softer than expected.
Shares of the company fell 2.5 percent to $65.50 in early
trade on the New York Stock Exchange on Friday.
"We are very cautious about North America and continue to
see headwinds here as pricing and volume remain under pressure
and as demand for pressure pumping and drilling equipment
remains weak and operators defer expenditures," Chief Operating
Officer Clay Williams said on a conference call.
First-quarter net income fell 17 percent to $502 million, or
$1.17 per share, from $606 million, or $1.42 per share, a year
earlier. Excluding one-time items, the Houston-based company
made $1.29 per share, whereas analysts on average expected
earnings of $1.36 per share, according to Thomson Reuters
I/B/E/S. Revenue rose 23 percent to $5.3 billion.
Operating margins for the rig technology business fell to
21.2 percent from 22.4 percent in the fourth quarter. Oil and
gas work in North America has slumped along with prices for
natural gas and natural gas liquids.