[NATIONAL OILWELL LETTERHEAD]
NEWS CONTACT: STEVE KRABLIN (713) 346-7773
FOR IMMEDIATE RELEASE
NATIONAL OILWELL REPORTS FOURTH QUARTER AND 2002 EARNINGS
HOUSTON, TX, February 12, 2003--National-Oilwell, Inc. (NYSE: NOI) today
reported fourth quarter and full year 2002 revenues and net income. Net income
was $17.2 million, or $0.21 per diluted share, for the fourth quarter compared
to $17.8 million, or $0.22 per diluted share, in the third quarter. Revenues
were $393.6 million for the period compared to third quarter revenues of $366.9
million. Full year revenues and net income of $1,521.9 million and $73.1
million, $0.89 per diluted share, compare to 2001 results of $1,747.5 million
and $104.1 million, $1.27 per diluted share.
Backlog of capital equipment orders totaled $364 million at December 31, 2002,
including $170 million attributable to the acquisition of Hydralift. Excluding
any Hydralift effect, revenues from backlog for the fourth quarter were $91
million and for the full year 2002 were $390 million, with order additions to
the backlog for those same periods of $54 million and $199 million.
Pete Miller, President and CEO of National Oilwell, stated "Fourth quarter
financial results were generally in line with the prior quarter, as were
activity levels. Operating margins for our Products and Technology Group and our
Distribution Services Group were comparable with results achieved in the prior
two quarters. We are pleased with the overall results for the year, which
evidenced our ability to remain solidly profitable in a depressed drilling
market, and continued our long-term strategy of consolidating acquisitions that
enhance our performance throughout the cycle. Indicative of an improving market
outlook, we are beginning to experience increased activity in our Distribution
Services business, as well as in our non-capital equipment business.
Additionally, we continue to be very excited about the future financial impact
from the addition of our two recent acquisitions, Hydralift and Mono Pumps."
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The Company commented that the acquisitions of Hydralift and Mono Pumps and
consolidated reporting of the Chinese joint venture are expected to increase
revenues in 2003 by approximately $425 million and pre-tax income by
approximately $30 - $35 million. The Mono Pump acquisition also increased common
shares outstanding by 3.2 million.
National Oilwell is a worldwide leader in the design, manufacture and sale of
comprehensive systems and components used in oil and gas drilling and
production, as well as in providing supply chain integration services to the
upstream oil and gas industry.
Statements made in this press release that are forward-looking in nature are
intended to be "forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934 and may involve risks and uncertainties.
These statements may differ materially from actual future events or results.
Readers are referred to documents filed by National Oilwell with the Securities
and Exchange Commission, including the Annual Report on Form 10-K, which
identify significant risk factors which could cause actual results to differ
from those contained in the forward-looking statements.
The following table sets forth comparative data (in thousands, except per share
data):
<Table>
<Caption>
Quarter Ended QUARTER ENDED Full Year Ended
September 30, DECEMBER 31, December 31,
------------- ---------------------------- ----------------------------
2002 2002 2001 2002 2001
------------ ------------ ------------ ------------ ------------
Revenues
Products and Technology Group $ 213,067 $ 238,088 $ 306,846 $ 917,250 $ 1,120,919
Distribution Services Group 175,616 174,194 175,538 686,174 707,818
Eliminations (21,754) (18,641) (16,641) (81,478) (81,282)
------------ ------------ ------------ ------------ ------------
Total $ 366,929 $ 393,641 $ 465,743 $ 1,521,946 $ 1,747,455
Operating Income
Products and Technology Group $ 30,241 $ 31,253 $ 46,471 $ 127,011 $ 171,013
Distribution Services Group $ 4,508 $ 4,293 $ 5,421 $ 18,083 $ 28,473
Corporate $ (2,847) $ (3,078) $ (2,537) $ (10,771) $ (10,209)
------------ ------------ ------------ ------------ ------------
Total $ 31,902 $ 32,468 $ 49,355 $ 134,323 $ 189,277
Net Income $ 17,756 $ 17,167 $ 28,348 $ 73,069 $ 104,063
Average diluted shares outstanding 81,522 81,743 81,432 81,709 81,733
Net income per diluted share $ 0.22 $ 0.21 $ 0.35 $ 0.89 $ 1.27
Backlog for capital equipment at quarter end $ 231,000 $364,000 * $ 385,000 $ 364,000 * $ 385,000
</Table>
*Includes $170 million Hydralift backlog at 12/31/02.
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