Allis-Chalmers earnings sink but still beat Wall St. views

HOUSTON—Oilfield services and equipment provider Allis-Chalmers Energy Inc. said Wednesday its first-quarter earnings fell 34 percent, mostly because of lower sales from equipment rentals, but still beat Wall Street's expectations.

The company said its profit fell to $8.1 million, or 23 cents per share, compared with $12.2 million, or 37 cents per share, in the year-ago quarter.

Revenue rose 13 percent to $153.2 million from $135.9 million in the prior-year period.

Analysts were expecting a profit of 21 cents per share on revenue of $147.9 million, according to a poll by Thomson Financial.

The company said rental services operating income fell to $6.2 million from $13.9 million a year earlier, mostly due to lower utilization and higher prices in the increasingly competitive Gulf of Mexico drilling business.

Allis-Chalmers also issued a second-quarter forecast in line with Wall Street's expectations.

Shares rose 13 cents to $17.52 in midday trading.