Smith International, Inc., supplier to the oil and gas industry, reported first-quarter sales were $2.11 billion, compared with sales of $1.68 billion in the same period a year ago. Profit was $160.2 million, up from $107 million a year ago.
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Offshore business volumes accounted for 90% of the Oilfield segment revenue increase over the December quarter, impacted by demand for drilling and completion fluids, environmental solutions and borehole enlargement technologies.
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On a geographic basis, increased activity in the U.S. deepwater market and rising offshore investment in the Eastern Hemisphere region, including the North Sea, Former Soviet Union and Middle East/Asia, accounted for the majority of the sequential improvement.
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Business segment Wilson, distributor of PVF, mill tools, safety and janitorial products, reported revenues of $546 million, 6% higher on a sequential quarter basis and 16% above the prior-year period. Higher sales in the upstream energy segment, which grew 11% period-to-period, accounted for the majority of the sequential revenue growth.
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Increased drilling and completion activity in North America and, to a lesser extent, higher project business volumes in the Europe/Africa region contributed to the revenue improvement for the upstream segment. Expanded downstream sector business volumes, which benefited from increased customer spending in the engineering and construction market, also contributed to the sequential revenue growth.
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Smith International, Inc. is a supplier of products and services to the oil and gas exploration and production industry through its four principal business units -M-I SWACO, Smith Technologies, Smith Services and Wilson.