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Smith International Reports Net Loss of $149 Million in '86

March 31, 1987

Smith International Inc., blaming declining oil-drilling activity, said it had a net loss of $149 million during 1986, contrasted with a net loss of $265.1 million a year earlier. Revenues during 1986 dipped to $415.2 million from $697.3 million in 1985.

For the fourth quarter, Smith reported a $44.4-million net loss, contrasted with a $206.8-million net loss a year earlier. Because of the drilling slump, Smith's revenues fell to $84.1 million from $172.4 million during the fourth quarter of 1985.

The Newport Beach manufacturer of drilling equipment for oil wells said the 1986 net loss includes a $46.6-million write-down on the value of certain capital assets and inventories, as well as an $18-million charge relating to employee severance and relocation costs and expenses--all stemming from its bankruptcy a year ago.

Smith filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy code in March, 1986, after a federal judge hit it with a $205-million judgment for infringing on a patent held by arch-competitor Hughes Tool Co.

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