Wednesday, April 28, 2010
Director, Investor Relations
SMITH INTERNATIONAL, INC. REPORTS FIRST QUARTER 2010 RESULTS
HOUSTON, Texas (April 28, 2010)... Smith International, Inc. (NYSE: SII) today announced
first quarter income from continuing operations of $46.5 million, or $0.19 per diluted share,
excluding pre-tax charges of $23.0 million and $16.5 million related to the Venezuelan currency
devaluation and transaction related costs, respectively. Reported net income for the first quarter
was $11.5 million, or $0.05 per diluted share, on revenue of $2.14 billion. On a comparative
basis, first quarter 2009 earnings from continuing operations, after excluding charges, were $114.5
million, or $0.52 per diluted share, on revenue of $2.41 billion, while in the fourth quarter of
2009, earnings from continuing operations were $20.1 million, or $0.09 per diluted share, on
revenue of $1.98 billion.
Increased drilling activity in the North American market was the primary driver of the
improved results and was broad-based, resulting in revenue increases in nearly all of the Companys
lines of business. Smiths oilfield-related businesses contributed a 22% sequential improvement in
North America revenue. M-I SWACO gained 23% while Smith Oilfield improved by 21% sequentially.
Driving the quarterly revenue gains in Smith Oilfield segment were drill bits and motors, as well
as higher revenue from the cased-hole wireline and borehole enlargement services. The Distribution
segment contributed significantly to the sequential improvement in both revenue and operating
income as it continues to experience higher volume in its energy sector operations and better
margins in part reflecting more favorable LIFO inventory cost impact.
Consolidated revenue increased $154.0 million, or 8 percent, from the fourth quarter of 2009,
while the M-I SWACO worldwide rig count increased by 10%. Nearly all of the sequential revenue
increase was generated in North America, influenced by a higher level of onshore drilling and
completion activity. Outside of North America, revenue was in line with the December 2009 quarter
compared to a 2% sequential increase in rig activity.