Replies to post #337 on National Oilwell Varco, Inc (NOV)

[Timothy Smith]

$NOV I expect the company's operating income margin of 15% to decline this quarter and possibly in the future. National Oilwell may be able to cut general and administrative expenses (9% of revenue) and engage in layoffs, but the cost reductions will most likely be unable to match the expected 15% sequential revenue decline. Anyway, I would not be surprised if the company announced a round of layoffs similar to that of competitors like Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB) and Baker Hughes (NYSE:BHI). Layoffs at some of the top oil services firms amid the oil industry downturn are now north of 48,000.

http://seekingalpha.com/article/3106766-national-oilwell-varcos-earnings-preview-3-key-items