Natco Records Higher 2Q Profit on Lower Costs

Oil services company Natco Group Inc. posted a slightly higher second-quarter profit Friday, as lower costs for goods helped it beat Wall Street estimates.

For the three months ending June 20, the company earned $6.4 million, or 32 cents per share, compared with $6.2 million, or 31 cents per share, a year earlier.

Quarterly revenue was $155.5 million, down from $160.4 million a year ago.

The results included a loss of about $1.7 million related to its proposed acquisition by Cameron International Corp. Natco also recorded a $600,000 loss for its UK subsidiary's cancellation of certain contracts.

Excluding those one-time costs, quarterly profit was 44 cents per share.

Analysts surveyed by Thomson Reuters expected earnings of 42 cents per share on revenue of $159 million. Analysts typically do not include one-time charges in estimates.

The total cost of goods sold and services fell to $109.6 million, down from $116.3 million.

In light of the proposed buyout, which Natco entered into June 1, the company said it is withdrawing full-year guidance.

Shares of Natco fell 15 cents to $39.50 in after hours trading, after slipping 43 cents during the regular session.

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