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Lufkin Industries Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Lufkin Industries Inc. (LUFK) filed Quarterly Report for the period ended 2010-09-30.

Lufkin Industries Inc. has a market cap of $1.54 billion; its shares were traded at around $51.41 with a P/E ratio of 45.5 and P/S ratio of 2.95. The dividend yield of Lufkin Industries Inc. stocks is 0.97%. Lufkin Industries Inc. had an annual average earning growth of 9.4% over the past 10 years.LUFK is in the portfolios of John Keeley of Keeley Fund Management, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

The Company reported net earnings from continuing operations of $12.6 million, or $0.42 per share (diluted), for the three months ended September 30, 2010, compared to net earnings from continuing operations of $5.1 million, or $0.17 per share (diluted), for the three months ended September 30, 2009. Net earnings from continuing operations were $29.2 million, or $0.97 per share (diluted), for the nine months ended September 30, 2010, compared to net earnings from continuing operations of $18.9 million, or $0.64 per share (diluted), for the nine months ended September 30, 2009.

Oil Field sales increased to $129.5 million, or 75.6%, for the three months ended September 30, 2010, from $73.7 million for the three months ended September 30, 2009. New unit sales of $69.9 million during the third quarter of 2010 were up $32.6 million, or 87.3%, compared to $37.3 million during the third quarter 2009, primarily from higher demand in North America. Pumping unit service sales of $27.7 million during the third quarter of 2010 were up $7.8 million, or 39.2%, compared to $19.9 million during the third quarter 2009. Automation sales of $23.0 million during the third quarter of 2010 were up $13.2 million, or 133.6%, compared to $9.8 million during the third quarter 2009. Lufkin ILS sales of $6.1 million during the third quarter of 2010 were up $1.4 million, or 31.9%, compared to $4.7 million during the third quarter 2009. Commercial casting sales of $2.8 million during the third quarter of 2010 were up $0.8 million, or 36.4%, compared to $2.0 million during the third quarter 2009. Oil Field s backlog increased to $105.6 million as of September 30, 2010, from $35.9 million at September 30, 2009, $101.7 million at June 30, 2010, and $43.3 million at December 31, 2009. This increase over the prior quarter was caused primarily by higher orders for new pumping units in the U.S. The sequential increase over 2009 backlog levels was due to higher new pumping unit demand in both U.S. and international markets as oil drilling activity increased.

Sales for the Company s Power Transmission segment decreased to $42.7 million, or 3.0%, for the three months ended September 30, 2010, compared to $44.0 million for the three months ended September 30, 2009. New unit sales of $30.4 million during the third quarter of 2010 were down $3.5 million, or 10.4%, compared to $34.0 million during the third quarter of 2009, as a result of decreased sales of high-speed units for oil and gas markets. Repair and service sales of $11.0 million during the third quarter of 2010 were up $1.9 million, or 20.6%, compared to $9.1 million during the third quarter 2009. Sales from Lufkin RMT increased $0.3 million during the third quarter of 2010 to $1.2 million, or 42.5%, compared to $0.9 million during the third quarter 2009. Power Transmission backlog of $101.6 million at September 30, 2010 increased from $97.9 million at September 30, 2009, and increased from $97.0 million at December 31, 2009, primarily from increased bookings of new units for the energy-related markets.

Oil Field sales increased to $333.7 million, or 28.1%, for the nine months ended September 30, 2010, from $260.4 million for the nine months ended September 30, 2009. New unit sales of $176.3 million during the first nine months of 2010 were up $31.7 million, or 21.9%, compared to $144.6 million during the first nine months of 2009. Pumping unit service sales of $74.8 million during the first nine months of 2010 were up $13.6 million, or 22.1%, compared to $61.2 million during the first nine months of 2009. Automation sales of $56.7 million during the first nine months of 2010 were up $20.2 million, or 55.5%, compared to $36.4 million during the first nine months of 2009. Lufkin ILS sales were $17.8 million during the first nine months of 2010 compared to $10.9 million during the first nine months 2009. Lufkin ILS was acquired on March 1, 2009. Commercial casting sales of $8.2 million during the first nine months of 2010 were up $0.9 million, or 13.0%, compared to $7.2 million during the first nine months of 2009. Oil Field s backlog increased to $105.6 million as of September 30, 2010, from $43.3 million at December 31, 2009. This increase was caused primarily by higher orders for new pumping units in both U.S. and international markets as oil drilling activity increased.

Sales for the Company s Power Transmission segment decreased to $118.4 million, or 11.7%, for the nine months ended September 30, 2010, compared to $134.2 million for the nine months ended September 30, 2009. New unit sales of $80.6 million during the first nine months of 2010 were down $24.4 million, or 23.2%, compared to $104.9 million during the first nine months of 2009, as a result of decreased sales of marine units and high-speed units for oil and gas markets. Repair and service sales of $34.4 million during the first nine months of 2010 were up $6.0 million, or 21.3%, compared to $28.4 million during the first nine months of 2009 from the benefits of new gear repair facilities and increased orders from the oil and gas markets. Sales from Lufkin RMT contributed $3.5 million during the first nine months of 2010. Power Transmission backlog at September 30, 2010 increased to $101.6 from $97.0 million at December 31, 2009, primarily from increased bookings of new units for the energy-related markets.

The Company s cash balance totaled $81.5 million at September 30, 2010, compared to $100.9 million at December 31, 2009. For the nine months ended September 30, 2010, net cash provided by operating activities was $32.2 million, net cash used in investing activities totaled $45.7 million and net cash used in financing activities amounted to $6.0 million. Significant components of cash provided by operating activities for the nine months ended September 30, 2010 included net earnings from continuing operations, adjusted for non-cash expenses, of $51.6 million partially offset by an increase in working capital of $19.4 million.

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