LUFKIN, Texas (AP) — Oilfield service company Lufkin Industries Inc. reported a 12 percent drop in first-quarter income Monday and said earnings for the second quarter will be below expectations. Its stock fell.
Net earnings for the January-through-March period were $10.9 million, or 34 cents per share, down from $12.4 million, or 40 cents per share, in the first quarter of 2011.
Excluding recent acquisition costs, the company said it had earnings of $17.9 million or 56 cents per share from continuing operations. That fell short of the consensus estimate of 59 cents per share by analysts surveyed by FactSet.
Revenue jumped 44 percent to $279.5 million from $194.4 million a year ago, boosted by acquisitions that helped sales of its pumping units and automation products. That was slightly ahead of analysts' consensus estimate of $276.1 million.
Lufkin said it now estimates second-quarter earnings of 80 cents to 90 cents per share, which is below analysts' consensus estimate of 93 cents per share. CEO John F. "Jay" Glick said earnings will be affected by charges as well as "only modest manufacturing performance improvements."
Shares of the company were down $3.05, or 4 percent, to $69.32 in afternoon trading after earlier falling as much as 10 percent.