EDMONTON - McCoy Corp.(TSX:MCB) has reported a double-digit drop in fourth-quarter net income as the oilfield equipment and services company continued to see a decline in the profitability of its mobile solutions division.
Edmonton-based McCoy says net income in the three months ended Dec. 31 was $3.3 million or 12 cents per share, down 15 per cent from $3.8 million or 14 cents per share in the same 2011 period as revenue remained almost flat at $44.3 million.
Results were better for the full year, with net profits down just one per cent at $11.7 million or 44 cents per diluted share on record revenue of $179.4 million. That compared with net income of $11.9 million, also 44 cents per diluted share, on revenue of $153.8 million in 2011.
McCoy said strong results in its energy products and services segment were offset by declining profitability in mobile solutions and an increase in corporate costs.
The EP&S segment manufactures drilling and completions equipment and provides service and replacement parts for the oil and gas industry. Mobile solutions provides custom heavy-duty trailers for pressure pumping, coil tubing and rig transport.
McCoy said in its earnings report that it continues to invest in infrastructure, new product development, strategic hires and sales and marketing to support its long-term growth initiatives.
"The most significant of these investments are being made in the EP&S segment, where efforts were undertaken to increase manufacturing capacity, improve manufacturing processes and realize efficiencies to improve throughput and customer responsiveness," the company said.
"McCoy expects the full impact of increasing manufacturing capacity will be realized in 2013," it said.