Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Daniel Boyd – Goldman Sachs.
Daniel Boyd – Goldman Sachs
Thanks. Margaret, I'd like to focus on North American margins, what you said actually were in the positive this quarter, what are your expectations going forward given your cost reduction so far, your continuing to make cost reductions and then your comment that you think pricing is stabilized?
Margaret K. Dorman
Yes, I think, Dan, that's an excellent question. I think that as we look forward we do feel like that we've realized most of the pricing impact in the North American market, so our expectation as we go forward is that you'll see those positive margins in that realm.
Daniel Boyd – Goldman Sachs
Can you help us with some type of magnitude? We've seen margins anywhere from 1% to 6.5% from some competitors in North America, are they in the middle of that range, higher end or lower end?
Margaret K. Dorman
Yes, I think as you know we run the business from a product versus a geographic perspective, but based on the financial performance as you noted of some of our peers in North America we thought it was important to highlight our North American results.
I would put those margins in the high single digits. Keep in mind we have one of the leading drill bit franchises which generates very good margins and returns, and this really helped contribute to the solid North American results this quarter.
John Yearwood
And those were our oil field-related segments.
Daniel Boyd – Goldman Sachs
Yes, and I guess in a very similar way to follow up for Chris on SWACO, given that we should see a positive mix going forward in terms of more deepwater, you also said that you've taken the hit on much of the re-pricing already in the second quarter. Should we also see margin improvement in SWACO?
Chris Rivers
Well, I think we'll see it gradually as we go forward, yes.
Operator
Our next question comes from Robin Shoemaker – Citi.
Robin Shoemaker – Citi
Yes. Just continuing on that theme, Chris, you described the international tendering is very competitive. You went after some new business and I think won some of that. A lot of it was deepwater. So when you say that you're kind of roughly current 12% margins would not decline further from here based on the business that you booked here in the first half of '09.
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