UPDATE 1-Rowan Q3 profit beats Street, not to spin-off LTI yet

martes 4 de noviembre de 2008 15:44 CET
 

* Q3 EPS of $1.00 beat estimates of $0.87

* Q3 revenue narrowly misses estimates

* Not to spin-off LTI yet owing to tough market conditions

* Shares up nearly 6 percent

Nov 4 (Reuters) - Rowan Companies Inc's (RDC.N: Cotización) third-quarter profit beat expectations, helped by a gain on asset sales, and the provider of contract drilling services said it continues to see firm demand in both domestic and foreign markets, sending its shares up nearly 6 percent.

However, the company said it was delaying plans to spin off its manufacturing unit, LeTourneau Technologies Inc (LTI), until the market conditions improved.

"The recent capital markets and commodity price weakness have adversely affected opportunities for monetizing our investment in LTI," Chief Executive Danny McNease said in a statement.

In March, Rowan had said it would pursue a sale or spin-off LTI and had hired Lehman Brothers and Morgan Stanley as financial advisers.

For the quarter, the company's net income fell to $114.1 million, down 13 percent from $130.8 million, a year earlier. However, revenue rose 5 percent to $527.1 million.   Continuación...