Name: National Oilwell Varco Inc. (NYSE:NOV) | Income Statement (Quarterly)
Creator: Stock Analysis on Net

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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National Oilwell Varco Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013	Dec 31, 2012	Sep 30, 2012	Jun 30, 2012	Mar 31, 2012	Dec 31, 2011	Sep 30, 2011	Jun 30, 2011	Mar 31, 2011
Revenue	1,724)	2,189)	2,722)	3,306)	3,909)	4,820)	5,709)	5,587)	5,255)	4,889)	6,172)	5,789)	5,601)	5,307)	5,685)	5,319)	4,734)	4,303)	4,259)	3,740)	3,513)	3,146)
Cost of revenue	(1,689)	(1,945)	(2,363)	(2,634)	(3,054)	(3,643)	(4,173)	(4,059)	(3,800)	(3,599)	(4,675)	(4,327)	(4,335)	(4,043)	(4,290)	(3,948)	(3,428)	(3,036)	(2,984)	(2,576)	(2,430)	(2,171)
Gross profit	35)	244)	359)	672)	855)	1,177)	1,536)	1,528)	1,455)	1,290)	1,497)	1,462)	1,266)	1,264)	1,395)	1,371)	1,306)	1,267)	1,275)	1,164)	1,083)	975)
Selling, general and administrative	(305)	(433)	(357)	(383)	(417)	(607)	(519)	(540)	(542)	(491)	(540)	(516)	(497)	(513)	(492)	(473)	(427)	(390)	(427)	(392)	(375)	(366)
Goodwill and intangible asset impairment	—)	—)	(1,634)	(55)	—)	—)	(104)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Operating profit (loss)	(270)	(189)	(1,632)	234)	438)	570)	913)	988)	913)	799)	957)	946)	769)	751)	903)	898)	879)	877)	848)	772)	708)	609)
Interest and financial costs	(30)	(25)	(27)	(24)	(26)	(26)	(26)	(26)	(27)	(26)	(27)	(26)	(30)	(28)	(21)	(11)	(9)	(8)	(9)	(8)	(9)	(14)
Interest income	3)	5)	5)	2)	2)	5)	5)	4)	5)	4)	4)	2)	3)	3)	2)	2)	3)	3)	5)	5)	4)	4)
Equity income (loss) in unconsolidated affiliates	(7)	(6)	(3)	—)	7)	9)	16)	9)	23)	10)	16)	13)	15)	19)	15)	7)	19)	17)	12)	11)	10)	13)
Other income (expense), net	(34)	(21)	(17)	(20)	(30)	(56)	(78)	9)	(21)	—)	(17)	(16)	13)	(21)	(28)	(22)	(5)	(16)	(13)	—)	(7)	(19)
Income (loss) from continuing operations before income taxes	(338)	(236)	(1,674)	192)	391)	502)	830)	984)	893)	787)	933)	919)	770)	724)	871)	874)	887)	873)	843)	780)	706)	593)
Provision for income taxes	121)	118)	152)	(36)	(105)	(189)	(233)	(283)	(284)	(239)	(272)	(283)	(239)	(224)	(203)	(265)	(285)	(269)	(270)	(252)	(226)	(189)
Income (loss) from continuing operations	(217)	(118)	(1,522)	156)	286)	313)	597)	701)	609)	548)	661)	636)	531)	500)	668)	609)	602)	604)	573)	528)	480)	404)
Income from discontinued operations	—)	—)	—)	—)	—)	—)	—)	—)	11)	41)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Net income (loss)	(217)	(118)	(1,522)	156)	286)	313)	597)	701)	620)	589)	661)	636)	531)	500)	668)	609)	602)	604)	573)	528)	480)	404)
Net (income) loss attributable to noncontrolling interests	—)	(1)	(1)	(1)	3)	(3)	(2)	(2)	(1)	—)	(3)	—)	—)	2)	—)	3)	3)	2)	1)	4)	1)	3)
Net income (loss) attributable to Company	(217)	(119)	(1,523)	155)	289)	310)	595)	699)	619)	589)	658)	636)	531)	502)	668)	612)	605)	606)	574)	532)	481)	407)

The financial results exhibit a distinct cyclical trajectory, characterized by a period of robust expansion from 2011 through 2014, followed by a severe contraction starting in 2015. Revenue experienced a sustained upward trend, rising from 3,146 million USD in March 2011 to a peak of 6,172 million USD in December 2013. However, a sharp reversal occurred beginning in 2015, with revenue plummeting to 1,724 million USD by June 2016, representing a significant erosion of the top line.

Gross Profitability and Margin Compression: Gross profit grew in tandem with revenue during the initial expansion phase, reaching a peak of 1,536 million USD in December 2014. Following this peak, gross profit collapsed precipitously, falling to 35 million USD by June 2016. This indicates that the cost of revenue did not decrease as rapidly as the decline in sales, leading to severe margin compression during the downturn.
Operating Income and Non-Cash Impairments: Operating profit remained positive and strong through late 2014, peaking at 988 million USD in September 2014. A critical inflection point occurred in December 2015, where a massive goodwill and intangible asset impairment of 1,634 million USD resulted in a quarterly operating loss of 1,632 million USD. While subsequent quarters showed reduced losses, the operating profile shifted from consistent profitability to a deficit state by mid-2016.
Expense Analysis: Selling, general, and administrative (SG&A) expenses scaled upward during the growth years, moving from 366 million USD in March 2011 to a high of 542 million USD in June 2014. During the revenue decline of 2015 and 2016, SG&A expenses were reduced to 305 million USD by June 2016. Despite these cost-cutting efforts, the reduction in overhead was insufficient to offset the rapid decline in gross profit.
Net Income and Taxation Trends: Net income attributable to the company followed the general trend of operating performance, showing strong growth until 2014. The transition to losses was stark in 2015, culminating in a net loss of 1,523 million USD in December 2015. A notable shift is observed in the provision for income taxes; whereas the entity recorded consistent tax expenses during profitable years, it began recording tax benefits (credits) during the loss-making quarters of 2015 and 2016, which partially mitigated the depth of the net losses.

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National Oilwell Varco Inc. (NYSE:NOV)

Income StatementQuarterly Data

Income Statement
Quarterly Data