Smith Sells Its Mining Tools Division
Smith International Inc. Tuesday said it has sold its mining tools division to Houston-based Hughes Tool Co., which has been embroiled in a patent-infringement suit against Smith for more than a decade.
No purchase price was disclosed for the Ohio-based Smith Mining Tools division, but a Smith spokeswoman said the sale was unrelated to the legal battle between the Irvine-based company and Hughes Tool.
“We wanted to concentrate our resources on our primary businesses,” the spokeswoman said, stressing that the sale is part of Smith’s plan to minimize its mining holdings.
Earlier this year, a federal court ruled against Smith in the 13-year-old, $3 billion suit. A trial to decide what damages, if any, Smith must pay will begin in January.
As reported earlier, Smith lost $39.8 million in the second quarter, compared with profits of $625,000 a year earlier. Of that loss, $22.8 million was in reserves established to cover possible damages arising from the suit, while $5 million was set aside to pay for legal expenses.
For the six months ended June 30, Smith lost $50.1 million, compared with net income of $3.9 million a year earlier.
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