UPDATE 2-Cameron posts higher profit, sees weaker margins

* EPS ex-items 64 cts vs Street’s 60 cts; tax rate helps

* Q3 revenue $1.53 bln vs $1.58 bln expected by Wall St

* Sees Q4 EPS of 65 to 67 cents, weaker margins

* Shares down 2.8 pct
(Adds comments from conference call, share price)

NEW YORK/SAN FRANCISCO, Nov 2 (BestGrowthStock) – Oilfield
equipment maker Cameron (CAM.N: ) posted a 19 percent rise in
quarterly profit on Tuesday, boosted by its best order flow in
two years, but said margins would slip in the current period.

Shares of the manufacturer of the blow-out preventer on the
ruptured BP Plc (BP.L: ) well in the Gulf of Mexico fell nearly 3
percent.

The unexpectedly strong North American growth of the last
year is likely to slow, Chief Executive Officer Jack Moore told
analysts on a conference call, but other markets such as the
North Sea, the Middle East and East Asia would make up for
that.

“We haven’t really seen the international markets kick in
yet,” said Moore, who added the position of chairman of Cameron
International Corp last week. “I say ‘yet’ because I think
there’s a lot of pent-up demand.”

While the list of projects Cameron was tracking is “longer
and bigger” than Moore had ever seen, it remains hard to
predict when clients will award the contracts, he said.

Cameron also expects tighter offshore drilling regulations
to generate more demand for blow-out preventer retrofits once
it becomes clear what is required.

“You’re going to see us really focus a lot of our capital
around really supporting the aftermarket and the service piece,
because I think modification is going to be the biggest
challenge all of these guys will have,” Moore said.

Third-quarter net profit rose to $148.7 million, or 61
cents per share, from $124.9 million, or 56 cents per share, a
year earlier.

Excluding litigation costs from the Gulf of Mexico disaster
and other one-time items, profit was 64 cents per share,
topping the analysts’ average forecast of 60 cents, according
to Thomson Reuters I/B/E/S.

Analysts said a lower tax rate drove much of the profit
growth.

Revenue climbed 24 percent to $1.53 billion, short of the
$1.58 billion expected by Wall Street.

The Houston-based company expects a fourth-quarter profit (Read more your timing to make a profit.)
of 65 cents to 67 cents per share before charges, while
analysts had forecast 65 cents.

Cameron’s rival in the subsea equipment business, FMC
Technologies Inc (FTI.N: ), last week reported a profit that
missed Wall Street expectations. [ID:nN27260030]

Cameron shares were down 2.8 percent at $42.68 in morning
New York Stock Exchange trading. As of Monday, the stock had
gained 5 percent this year, compared with a 9 percent rise in
the Philadelphia Stock Exchange oil service index (.OSX: ).
(Reporting by Matt Daily, additional reporting by Braden
Reddall in San Francisco; editing by John Wallace and Lisa Von
Ahn)

UPDATE 2-Cameron posts higher profit, sees weaker margins