8-K

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                             SMITH INTERNATIONAL INC

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                                 MARCH 26, 2001
                                 DATE OF REPORT
                        (DATE OF EARLIEST EVENT REPORTED)



                            SMITH INTERNATIONAL, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


     DELAWARE                          1-8514                95-3822631
(STATE OR OTHER JURISDICTION OF      (COMMISSION          (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION)      FILE NUMBER)        IDENTIFICATION NO.)


                      411 N. SAM HOUSTON PARKWAY, SUITE 600
                                 HOUSTON, TEXAS
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)


                                      77060
                                   (ZIP CODE)


                                 (281) 443-3370
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)


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ITEM 5:  OTHER EVENTS

       On March 26, 2001, the Registrant issued a press release announcing that
it expected to report improved revenues and profitability levels across each of
its business units for the first quarter of 2001, as compared to the prior year
and prior quarter periods. The Registrant also announced that it intends to
release its first quarter financial results before the market opens on
Wednesday, April 18, 2001.

      A copy of the press release announcing the improved financial outlook and
the earnings release for the first quarter of 2001 is filed as Exhibit 99.1 and
is hereby incorporated herein by reference.


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

      (a)   Financial statements of businesses acquired

            Not applicable.

      (b)   Pro forma financial information

            Not applicable.

      (c)   Exhibits

            99.1  Press Release issued by the Registrant dated March 26, 2001.

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                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                            SMITH INTERNATIONAL, INC.

                            /s/ NEAL S. SUTTON
                            --------------------------
                            By: Neal S. Sutton
                                Senior Vice President - Administration,
                                General Counsel and Secretary


Date:  March 26, 2001

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                                 EXHIBIT INDEX



    Exhibit
    -------
      99.1      -- Press Release issued by the Registrant dated March 26, 2001.

EX-99.1

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                                                                    EXHIBIT 99.1

PRESS RELEASE

- ------------------------------------------------------------------------------
SMITH INTERNATIONAL, INC.
P.O. BOX 60068
HOUSTON, TX 77205-0068
WEBSITE ADDRESS: smith.com

FOR RELEASE
MONDAY, MARCH 26, 2001

CONTACT: MARGARET K. DORMAN
         CHIEF FINANCIAL OFFICER
         (281) 443-3370


                        SMITH INTERNATIONAL, INC. REPORTS
                         IMPROVED FIRST QUARTER OUTLOOK

   HOUSTON, Texas (March 26, 2001)... Smith International, Inc. (NYSE: SII)
is scheduled to make an investor presentation at the Howard Weil Energy
Conference on March 26, 2001, during which management will discuss the
Company's financial outlook for the first quarter of 2001.

   Revenues for the current quarter are expected to be in the $850 million
range, more than 35 percent above amounts reported in the first quarter of 2000
and 12 percent higher sequentially. While results for the period have not yet
been consolidated, the Company believes earnings per share on a diluted basis
will be at, or slightly above, 65 cents for the period ending March 31, 2001.
Smith reported earnings per share of 23 cents and 52 cents for the first and
fourth quarters of 2000, respectively.

   The projected 25 percent improvement in earnings on a sequential quarter
basis is attributable to increased activity levels in North America and
Europe/Africa, as well as the impact of pricing in the oilfield segment. The
Company expects to report improved revenues and profitability levels across each
of its business units, as compared to the prior year and prior quarter periods.

   Financial results for the first quarter are scheduled to be released
Wednesday, April 18, 2001.
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   Smith International, Inc. is a leading worldwide supplier of premium products
and services to the oil and gas exploration and production industry, the
petrochemical industry and other industrial markets through its four principal
business units - M-I, Smith Bits, Smith Services and Wilson.

   Certain comments contained in this news release concerning the anticipated
financial results of the Company constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and are
subject to the safe harbor created by that Act. Whenever possible, the Company
has identified these "forward-looking" statements by words such as "expected,"
"believes" and similar phrases. The forward-looking statements are based upon
managements' expectations and beliefs and, although these statements are based
upon reasonable assumptions, there can be no assurances that the Company's
financial results will be as estimated. The Company assumes no obligation to
update publicly any forward-looking statements whether as a result of new
information, future events or otherwise. For a discussion of factors which could
impact the Company's results, review the Smith International, Inc. Annual Report
on Form 10-K for the year ended December 31, 2000 as filed with the Securities
and Exchange Commission.