LUFKIN, TX (KTRE) - Lufkin Industries' revenues declined 29 percent in the second quarter of 2009, compared to the same period in 2008, according to a company press release.
Excluding the impact of a class-action lawsuit against the company, Lufkin Industries' earnings from continued operations declined to $6 million, compared with $21.2 million for the second quarter of 2008.
Lufkin Industries President Jay Glick called the quarter "a difficult one for our entire industry."
"Bookings in both our Oil Field and Power Transmission divisions were down significantly both from the fourth quarter of 2008 and from the first quarter of 2008," Glick stated. "Several international projects were reduced in size and several were postponed, which further impacted bookings during the quarter."
Glick stated the company saw significant declines in drilling activity. The combined order backlog declined to $162.3 million in the second quarter, compared to $208 million at the end of the first quarter.
Glick stated business should begin to improve in the second half of 2009.
"We have already seen signs of stabilization in orders for our high-speed gearboxes, and we are seeing opportunities in new markets for our artificial lift services and systems," Glick stated.