Question-and-Answer Session
Operator
(Operator Instructions) Our first call comes from Robin Shoemaker – Citigroup.
Robin Shoemaker – Citigroup
Margaret and John, I just wanted to go back to some of your thoughts at the beginning of the year where you were anticipating that you wouldn't lose a lot of pricing to downturn and mostly volume related, and clearly you have a little bit of different product clines here with the acquisition of W-H. But in your fluids and drill bit business, it sounds like the downturn here clearly is somewhat at odds with prior downturns with regard to pricing deterioration there and I just wonder if you could just generally comment on that.
Margaret K. Dorman
Robin, a great question, I don't know that our mindset has changed a lot. I think that the fluid business from a pricing perspective has hung in very well. I think the drill bit area from a pricing perspective has also performed very well. As we said, this has largely been volume. We have seen some pricing pressure largely in the Smith Oilfield business, cold tubing wire line directional, but I don't know that things have unfolded a lot differently. But clearly we're seeing pricing pressure and I think some of that pricing pressure is probably mounting as the rigs continue to fall.
John, do you want to add anything?
John Yearwood
Yes, you'll see most of the pricing pressure I think come through in the second quarter, Robin, but I wasn't around with Smith in the previous down cycle of '01 or '98/'99, but I echo what Margaret is saying. The businesses seem to, the fluids and bits seem to have held up very similar now as in the past.
Robin Shoemaker – Citigroup
Okay, just one other question then, the deepwater segment, you mentioned you expect seven new rigs to enter the market. What is your share of those seven new rigs as you know it now?
John Yearwood
For the new rigs entering both the international market and the Gulf of Mexico, just to answer the question from a worldwide perspective, we would expect to maintain or even increase our share as we go forward.
Robin Shoemaker – Citigroup
Okay, so for those rigs that we're talking about you would know now.
John Yearwood
Mostly, yes, there's a couple that are still to be determined but mostly we know, yes.
Operator
Our next question comes from Dan Boyd - Goldman Sachs.
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