EXHIBIT 99.1
[NATIONAL OILWELL LOGO]
NEWS CONTACT: STEVE KRABLIN (713) 346-7773
FOR IMMEDIATE RELEASE
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NATIONAL OILWELL REPORTS FIRST QUARTER EARNINGS
HOUSTON, TX, April 25, 2003--National-Oilwell, Inc. (NYSE: NOI) today announced
results for the first quarter of 2003, reporting net income of $19.2 million, or
$0.23 per diluted share, an 11.6% increase over fourth quarter net income of
$17.2 million, or $0.21 per diluted share. Revenues were $500.6 million for the
period compared to fourth quarter revenues of $393.6 million.
Backlog of capital equipment orders increased to $368 million at March 31, 2003,
compared to $364 million at December 31, 2002. Revenues from backlog for the
first quarter were $170 million, with order additions for the period of $174
million.
Pete Miller, President and CEO of National Oilwell, stated "We are extremely
pleased with the growth in our backlog, the first increase since September 2001
that was not the result of an acquisition. The quarter saw strong shipping and
order intake activity, including the successful attainment of the entire
drilling suite and related engineering and design work for one of what we
believe will be several large international projects awarded during 2003.
"Most of the revenue growth over the fourth quarter of last year is the result
of our recent Hydralift and Mono Pump acquisitions, which also increased our
fixed costs in the first quarter. These acquisitions have favorably positioned
the company for future growth, with Hydralift further enhancing our ability to
participate in large offshore projects. As we complete the integration of
Hydralift into our other Norwegian operations in the second quarter, these fixed
costs will decline.
"While we are encouraged by the increase in land drilling activity in the first
quarter of 2003, our operating results will benefit as the trend broadens to the
international, offshore and deeper drilling markets. "
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.
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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):
Quarter Ended QUARTER ENDED
December 31, MARCH 31,
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2002 2003 2002
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Revenues
Products and Technology Group $ 238,088 $ 335,476 $ 241,272
Distribution Services Group 174,194 184,336 167,529
Eliminations (18,641) (19,236) (19,815)
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Total $ 393,641 $ 500,576 $ 388,986
Operating Income
Products and Technology Group $ 31,253 $ 41,832 $ 35,450
Distribution Services Group 4,293 4,716 4,568
Corporate (3,078) (3,120) (2,302)
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Total $ 32,468 $ 43,428 $ 37,716
Net Income $ 17,167 $ 19,166 $ 21,185
Average diluted shares outstanding 81,743 84,476 81,585
Net income per diluted share $ 0.21 $ 0.23 $ 0.26
Backlog for capital equipment at quarter end $ 364,000 $ 368,000 $ 300,000
Condensed Balance Sheet Data:
Cash and cash equivalents $ 118,338 $ 65,361
Accounts receivable 428,116 439,975
Inventories 470,088 517,689
Other 98,526 126,105
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Total current assets 1,115,068 1,149,130
Net property, plant and equipment 208,420 240,451
Other assets 645,174 695,041
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Total assets $ 1,968,662 $ 2,084,622
Current liabilities $ 346,216 $ 369,178
Long-term debt 594,637 603,043
Deferred income taxes 54,612 55,496
Other liabilities 30,229 34,208
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Total liabilities 1,025,694 1,061,925
Minority interest 9,604 11,530
Shareholders' equity 933,364 1,011,167
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Total liabilities and equity $ 1,968,662 $ 2,084,622
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