Weatherford Intl., Ltd. (WFT) Tops Q2 EPS by 2c

Weatherford Intl., Ltd. (NYSE: WFT) reported Q2 EPS of ($0.10), $0.02 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $2.39 billion versus the consensus estimate of $2.28 billion.

Bernard J. Duroc-Danner, Chairman of the Board, President and Chief Executive Officer, stated, "The second quarter was a very difficult one to navigate. Given the circumstances, I would like to highlight two positives, our revenue performance and our North American decrementals. Rig count declined 26% on a worldwide basis. By contrast, our revenue performance showed a sequential decline of 14%. The international segment was particularly strong, with a decline of only 2.7%, despite lower activity and pricing levels, suggesting that we are gradually increasing market share. North American revenue declined 30% compared to a 40% reduction in rig count and despite our disproportionately larger presence in Canada and on U.S. land. I would also focus your attention on the sequential decremental margins for North America, which at 23% were about half the level achieved in 2009. This reflects the strong and proactive cost management measures we have taken this year.

We remain confident in our ability to generate positive free cash flow on a full year basis. By implementing focused measures and continued discipline, we generated second quarter free cash flow of $104 million, a sequential improvement of $370 million. This result was achieved despite industry headwinds and a very weak North American market, which drove negative net income for the quarter."

For earnings history and earnings-related data on Weatherford Intl., Ltd. (WFT) click here.

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