Smith International Inc. said last week that...

Smith International Inc. said last week that it is negotiating the possible sale of its Irvine manufacturing facilities and acreage used by its Smith Tool division.

Robert Gubrud, vice president and treasurer of the ailing Newport Beach-based company, refused to disclose how much the company is asking for the property or with whom it is negotiating. Gubrud said, however, that in the event of a sale, the facilities would be leased back to the company.

Hit by slack demand for oil rig drill bits, Smith Tool has been the victim of several rounds of layoffs during 1985, including one last month that saw 350 employees dropped from the company’s payroll.

As previously reported, Smith International lost $58.3 million during the nine months ended Sept. 30, compared with net earnings of $7.5 million during the period a year earlier.