Baker Hughes Issues Outlook for the Fourth Quarter of 2012
HOUSTON, Dec. 18, 2012
HOUSTON, Dec. 18, 2012 /PRNewswire/ --Baker Hughes Incorporated (NYSE: BHI)
provides the following update to North America and International operations
for the fourth quarter of 2012:
North America revenue and profit margins are expected to be lower than
previous expectations due to weaker than anticipated onshore activity and
further price erosion within Pressure Pumping operations. As a result, North
America operating profit before tax margin^1 is now expected to be between
8.5% and 9.5% for the fourth quarter of 2012, as compared to 11.7% in the
third quarter of 2012.
International operations are being adversely impacted by several factors,
including weaker than anticipated rig count activity in Brazil and Colombia,
activity delays in the North Sea, and continued operational delays in Iraq.
Despite these factors, International operating profit before tax margin^1 is
expected to be similar to the 12.0% reported in the third quarter of 2012
(excluding the impact of bad debts recognized in Latin America and Europe).
Baker Hughes will discuss the final results of the fourth quarter of 2012 in
detail during its previously announced fourth quarter earnings conference
call, which is scheduled to begin at 8:00 a.m. EST on Wednesday, January 23,
^1Operating profit before tax is a non-GAAP measure defined as profit before
tax ("income before income taxes") less certain identified costs. Operating
profit before tax margin is a non-GAAP measure defined as operating profit
before tax divided by revenue. Management uses each of these measures because
it believes they are widely accepted financial indicators used by investors
and analysts to analyze and compare companies on the basis of operating
performance and that these measurements may be used by investors to make
informed investment decisions. The results for the third quarter of 2012
exclude the impact of a $43 million before-tax charge related to internally
developed software and other information technology assets, and a $20 million
before-tax charge associated with the closure of a chemical manufacturing
facility in the United Kingdom. Currently, there are no adjustments included
in the outlook for the fourth quarter of 2012.
Baker Hughes is a leading supplier of oilfield services, products, technology
and systems to the worldwide oil and natural gas industry. The company's
58,000-plus employees today work in more than 80 countries helping customers
find, evaluate, drill, produce, transport and process hydrocarbon resources.
For more information on Baker Hughes' century-long history, visit:
This news release (and oral statements made regarding the subjects of this
release, including on the conference call referenced herein) contain
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, (each a "forward–looking statement"). The words
"anticipate," "believe," "ensure," "expect," "if," "intend," "estimate,"
"project," "forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely," and similar
expressions, and the negative thereof, are intended to identify
forward–looking statements. There are many risks and uncertainties that could
cause actual results to differ materially from our forward-looking statements.
These forward-looking statements also are affected by the risk factors
described in the company's Annual Report on Form 10-K for the year ended
December31,2011, and those set forth from time-to-time in other filings with
the Securities and Exchange Commission ("SEC"). The documents are available
through the company's website at: http://www.bakerhughes.com/investoror
through the SEC's Electronic Data Gathering and Analysis Retrieval System
(EDGAR) at: http://www.sec.gov. We have yet to complete our review and
compilation of our financial information for the fourth quarter of 2012, and
accordingly, expected results are subject to change. We undertake no
obligation to publicly update or revise any forward–looking statement.
Media Relations: Teresa Wong, +1.713.439.8110, email@example.com
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Investor Relations: Trey Clark, +1.713.439.8039, firstname.lastname@example.org
Eric Holcomb, +1.713.439.8822,
SOURCE Baker Hughes
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