The Rising Influence of Rising Affluence

[DewDiligence]

CLB expects 1Q11 EPS to be $0.08-0.10 lower than the prior guidance
of $0.82-0.84 due to the weather and the situation in Libya. I.e. the
new 1Q11 guidance is $0.72-0.76. Although the full-year 2011 EPS
guidance of $3.55-3.60 has not formally been updated, it’s reasonable
to infer that it too will be lowered by $0.08-0.10, leaving an unofficial
new range of $3.45-3.52.

From an 8-K filed after the close today:

http://sec.gov/Archives/edgar/data/1000229/000100022911000017/clb-8k_disclosure.htm

Core Laboratories N.V. reported that colder than average temperatures in North America created delays to expected client activity in January and February 2011. The Company now believes these affected projects will not be completed before the end of the first quarter of 2011, similar to reports from other oilfield service companies with North American operations. Further, Core does not expect the missed work, when undertaken, to be additive to future results as the activity will merely be pushed out in time.

Core Laboratories is also closely monitoring the civil unrest in North Africa and the Middle East. While the Company does not have infrastructure risk in North Africa, Core has seen some slow down in activity levels as well as a cessation of projects in Libya. Core has not experienced a slowdown of activity in the Middle East at this point, although the situation is unsettled at this time and could change very rapidly. Additionally, the Company has infrastructure in-place in the Middle East, primarily Abu Dhabi, Saudi Arabia, Kuwait, Oman, Qatar and Turkey, which could be affected if civil unrest spreads to these areas. In the aggregate, North Africa and the Middle East represent about 4% of Core’s US GAAP reported revenues.

Core Laboratories now expects a negative impact from these unplanned, mostly weather-related events of approximately $0.08 to $0.10 per diluted share during first quarter 2011, down from the Company’s prior first quarter earnings guidance of $0.82 to $0.84 per diluted share. The Company, however, still expects free cash flow, defined as cash from operations less capital expenditures, to exceed $1.00 per diluted share for the quarter.