NOW Inc. reports loss for 2Q
NOW Inc. reported a second quarter loss of $19 million, or 18 cents per fully diluted share.
The company’s revenues for the quarter were $750 million, a decrease of 21 percent from the same quarter last year.
As announced earlier this week, the company closed the acquisition of Odessa Pumps and Equipment Inc., a distributor of pumps and equipment for the oil & gas and municipal and wastewater markets. The company also announced that it had entered into an agreement to purchase the business of Challenger Industries Inc., a pipe, valves and fittings supplier for the downstream, midstream and upstream energy markets. In addition to these two U.S. acquisitions, the company recently completed an acquisition of a Canadian supplier of valves and actuators.
“Looking forward, we will be steadfast in executing our long-term growth strategy while weathering this downturn. Although we saw some modest growth in rig counts in July, recent oil price declines make the timing of a recovery uncertain," said Robert Workman, president and CEO of NOW Inc. "Since the fourth quarter of 2014, we have reduced our quarterly warehousing, selling and administrative expenses by approximately $28 million, or $41 million of reductions when excluding acquisitions. We will continue to manage through this cycle, be nimble and position DNOW to achieve our objectives as the market recovers.”
Second quarter revenues for the United States were $496 million, a decrease of 25 percent from the second quarter of 2014, or a 28 percent decline in revenues excluding acquisition. Excluding growth attributable to 2015 acquisitions, sequential revenues declined 17 percent, versus a U.S. rig count decline of 34 percent, in the second quarter of 2015.
Revenues for the second quarter of 2015 for Canada were $89 million, down 29 percent from the second quarter of 2014. Canada’s sequential revenue decline was driven by a 68 percent rig count decline offset partially by large projects in the western provinces and the implementation of new contracts.
International operations generated second quarter revenues of $165 million, which were flat with the second quarter of 2014. Excluding growth attributable to 2015 acquisitions, sequential revenues were down internationally, primarily from reduced market activity and customer spending, offset by approximately $30 million impact of the acquisitions.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
