NATCO Group announced revenue for the fourth quarter 2007 of $156.8 million, an increase of 12% over fourth quarter 2006 revenue of $140.4 million. Net income available to common stockholders for the fourth quarter 2007 was $12.8 million, or $0.66 per diluted share, compared to net income available to common stockholders for the fourth quarter 2006 of $10.4 million, or $0.55 per diluted share. Segment profit increased to $21.1 million for the fourth quarter 2007 from $16.4 million for the fourth quarter 2006.
Bookings for the fourth quarter 2007 were $136.9 million compared with fourth quarter 2006 bookings of $127.2 million.
For the full year 2007, the Company posted revenue of $570.1 million, up 10% over full year 2006; segment profit of $77.8 million, up 19% over full year 2006; and net income available to common stockholders, in 2007, of $45.1 million, or $2.36 per diluted share, compared with $36.2 million, or $1.96 per diluted share for 2006.
John U. Clarke, NATCO's Chairman and CEO said, "We are pleased with another strong financial performance in 2007. Importantly, along with record revenue, segment profit and earnings per share, the Company made great strides in extending our global reach through targeted acquisitions and joint ventures in Malaysia, Saudi Arabia and in the FPSO market. Each of these alliances is aimed at faster deployment of NATCO's industry leading technologies with the help of world recognized partners."
Clarke added, "We further supplemented our internal business processes during 2007 to keep pace with the rapid expansion of our business to date and adopted a new Project Delivery System to enhance execution capabilities to support continued growth. These investments are important to our goals of expanding our geographic reach to new markets and broadening the scope of supply offered to our customers which, in turn, reduces our dependency on any particular job or market in meeting our growing bookings targets."
For the fourth quarter 2007, Oil & Water Technologies segment revenue decreased from the fourth quarter 2006 by 4% to $95.5 million. The decrease in revenue is largely attributable to the timing of built-to-order project awards. Bookings of built-to-order projects in Oil & Water Technologies for the fourth quarter of 2007 approximated $21.9 million, about flat with fourth quarter 2006. However, bookings to date in 2008, include a $40 million Saudi Arabian award and a partial award for a Nigerian offshore project with expected total scope of about $14 million. Segment profit decreased from $6.5 million to $4.6 million in the fourth quarter 2007 compared with the 2006 fourth quarter due to the lower revenue and an approximate $1.0 million adjustment to reduce the carrying value of inventory for the period. The inventory adjustment resulted primarily from raw materials and parts shrinkage at certain North American manufacturing and branch locations along with revaluing certain slow-moving items.
Revenue from the Gas Technologies segment was $30.4 million in the fourth quarter 2007, compared to $17.7 million in the fourth quarter 2006. Segment profit for the fourth quarter 2007 was $11.5 million compared with $6.4 million in the prior year period. The improvement in Gas Technologies segment profit is primarily attributable to higher revenue contribution from built-to-order projects, including a large South East Asia CO2 membrane project and record volumes at the Company's West Texas processing facility. Bookings in the fourth quarter 2007 were $11.0 million, compared with $16.9 million in the fourth quarter 2006.
Revenue and segment profit contribution from the Automation & Controls segment in the fourth quarter 2007 increased from $24.1 million and $3.5 million, respectively, in the fourth quarter 2006 to $32.2 million and $5.0 million, respectively, in the fourth quarter 2007. The increases in revenue and segment profit in the 2007 quarter versus the prior year quarter are primarily attributable to a large facility upgrade project nearing completion in Kazakhstan.
The comparison of 2007 to 2006 net income available to common stockholders for the full year was negatively affected by an increase in the Company's effective tax rate to 35.3% from 33.9% for 2006. The increase resulted from the reversal of valuation allowances against deferred tax assets in the prior year which reduced the 2006 effective tax rate. Weighted average diluted shares of 19.8 million for the fourth quarter 2007 increased from 19.5 million in the fourth quarter of 2006, primarily as a result of stock options and restricted stock issued pursuant to the Company's stock compensation plans. Additionally, approximately 200,000 shares of common stock were issued as consideration in the ConSepT acquisition on December 3, 2007.
The Company had no debt and $63.6 million of cash and cash equivalents at December 31, 2007.
Mr. Clarke added, "While our results were records for revenue, segment profit and earnings per share for 2007, uncertainty in timing of project awards remained a challenge to forecasting our business. As demonstrated by a very active start to 2008, this work has not gone away. We expect this momentum to continue across all of our markets, especially in South East Asia, the Middle East, Mexico and West Africa. Additional awards, combined with a strong competitive position in our standard and traditional equipment business and international field services as well as benefits from recent acquisitions, support our continuing confidence in another record year for 2008. As such we are issuing first quarter 2008 guidance and reaffirming full-year 2008 guidance."
The Company expects first quarter 2008 revenue of $150 million to $160 million and segment profit of $19 million to $22 million. For 2008, the Company is reaffirming its expectation for revenue to be within a range of $620 million and $650 million with segment profit of $90 million to 98 million and diluted earnings per share of $2.75 to $3.00.