Smith International Posts $29.7-Million Profit for ’87
Smith International, a Newport Beach oil services company that emerged from Chapter 11 bankruptcy proceedings on New Year’s Eve, reported Tuesday a $29.7-million profit for 1987.
The company’s 1987 earnings include a $91.4-million gain attributable to the reorganization plan and a gain of $6.8 million from a pension plan over-funding associated with sale of the company’s McEvoy-Willis unit.
But Smith also took a one-time charge of $20.5 million related to property sales and estimated costs to be incurred from completing the reorganization, according to Loren Carroll, chief financial officer.
“There are a heck of a lot of unusual items that go along with exiting a bankruptcy,” Carroll said.
Smith’s 1987 earnings contrast with a net loss of $149.0 million in 1986. The company reported revenue of $264.4 million for 1987, down from $324.0 million the previous year.
For the fourth quarter, the company reported net income of $70.7 million on revenue of $78.0 million, contrasted with a loss of $44.4 million on revenue of $63.2 million during the same period a year earlier.
The company attributed the increase in quarterly revenue to more drilling activity and to higher prices for drill bits.
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