USA: Baker Hughes 2Q Revenue Up 12 Pct

July 20, 2012

Baker Hughes Incorporated announced today net income of $439 million for the second quarter of 2012. Diluted earnings per share was $1.00, which compares to $0.77 for the second quarter of 2011 and $0.86 for the first quarter of 2012.

Revenue for the second quarter of 2012 was $5.33 billion, up 12% compared to $4.74 billion for the second quarter of 2011 and down 0.5% compared to $5.36 billion for the first quarter of 2012.

“Baker Hughes delivered improved results in the second quarter,” said Martin Craighead, Baker Hughes President and Chief Executive Officer. “We achieved 2 percent sequential growth in operating income despite challenging market conditions in North America. The impact on margins from the seasonal slowdown in Canada was mostly offset by improved results in onshore U.S. The initiatives to improve our Pressure Pumping business helped stabilize its results this quarter by offsetting the higher costs for certain raw materials and the weaker market conditions for Pressure Pumping. Our International business delivered improved revenue and operating profit, driven primarily by outstanding performance in Europe and the Middle East. “

“We are cautiously optimistic about the market outlook for the remainder of the year. If commodity prices remain at current levels, we believe activity in onshore U.S. should remain stable. In the Gulf of Mexico and International, we expect continuing improvement as these markets expand,” Craighead added.

Debt increased by $514 million to $5.03 billion compared to the first quarter of 2012. Cash increased by $12 million to $792 million compared to the first quarter of 2012.

The effective tax rate for the second quarter of 2012 was favorably impacted by the settlement of certain tax audits and other matters. The Company continues to expect the full year 2012 effective tax rate to be between 33% and 34%.

Capital expenditures were $771 million, depreciation and amortization expense was $380 million, and dividend payments were $66 million in the second quarter of 2012.

EBITDA (a non-GAAP measure) in the second quarter 2012 was $1.02 billion, up $29 million sequentially.

[mappress]
LNG World News Staff, July 20, 2012