Smith International, Inc. (SII) Announces Q3 Results

Smith International, Inc. (NYSE: SII) announced third quarter income from continuing operations of $14.8M, or $0.07 per diluted share, excluding $7.8M of after-tax charges related to employee severance. Reported net income in the third quarter of 2009 totaled $7.0M, or $0.03 cents per diluted share, on revenue of $1.88B. In the comparable prior-year period, earnings from continuing operations, net of charges, were $211.9M on revenue of $2.85B, while second quarter 2009 earnings from continuing operations, net of charges, were $32.1M on revenue of $1.94B.

The Company’s third quarter results were primarily influenced by unfavorable economic fundamentals in the North American natural gas market that contributed to continued pricing pressure within the U.S. operations of the Distribution and Smith Oilfield segments. Line pipe, drilling-related tubular offerings, as well as fishing and remedial services were particularly affected during the quarter. The modest seasonal recovery of drilling activity in Canada, sequential quarter revenue growth in Latin America and the solid performance of M-I SWACO were not sufficient to mitigate the revenue and margin deterioration experienced during the third quarter of 2009.