UPDATE 2-Rowan sees Q1 falling short of Street view

jueves 17 de abril de 2008 18:53 CEST
 

(Recasts, adds analyst comments, updates share movement)

By Chakradhar Adusumilli

BANGALORE, April 17 (Reuters) - Rowan Cos Inc (RDC.N: Cotización), a provider of contract drilling services, warned its first-quarter operating results might fall short of consensus estimates due to lower drilling revenue and delays in shipments in the manufacturing division.

The news prompted at least two brokerages, including Lehman Brothers, to cut their quarterly earnings estimates for the company by about 16 percent to 17 percent.

The company forecast a sequential decline in manufacturing operating results for the first quarter. It had reported fourth-quarter income of $38.3 million from manufacturing operations, which produces equipment for the drilling, mining and timber industries.

"The big surprise to us was on the manufacturing side and not on the drilling side," said Tristone Capital Inc analyst Waqar Syed, who lowered his earnings estimate for the company to 81 cents from 98 cents a share for the quarter.

Analysts on average were expecting earnings of 96 cents a share, before items, on revenue of $542.2 million, according to Reuters Estimates.

LOWER UTILIZATION

The Houston, Texas-based company said its offshore fleet was about 91 percent utilized during the quarter, down from the prior quarter due to rig relocations and modifications.   Continuación...