SERVICE SECTOR / Baker Hughes earnings warning
BAKER HUGHES EXPECTS LOWER EARNINGS IN SEPTEMBER QUARTER
HOUSTON, Sept. 24 /CNW/ -- Baker Hughes Incorporated (NYSE: BHI;
PCX, EBS) announced today that it expects operating earnings per share for the
quarter ending September 30, 1998, before any non-recurring charges, to be
roughly half of the Street consensus of $0.36.
Baker Hughes, which merged with Western Atlas Inc. on August 10, 1998,
said continuing declines in activity in the Western Hemisphere, emerging
softness in several Eastern Hemisphere markets and a modest level of price
erosion due to activity declines are impacting the overall business.
Additionally, specific to the September quarter, hurricane and tropical storm
related delays in the Gulf of Mexico, as well as a one quarter overlap of
corporate related expenses from the Western Atlas merger will also impact the
quarter.
As previously announced, Baker Hughes intends to take a merger and
activity related charge in the September quarter. The company will cut over
2,000 jobs or approximately 6% of total headcount in the September quarter.
These cuts are in addition to a 700 head count reduction taken in the June
quarter. It is the company's intention to size its ongoing operations for an
upstream E&P spending level in 1999 that could be down as much as 10% from
1998 levels.
Forward-Looking Statements
This news release contains ''forward-looking'' statements within the
meanings of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Forward-looking
statements are indicated by words such as ''believe'', ''expects'', ''will'',
''intends'', ''intention'' and ''emerging''. See page 13 of the Joint Proxy
Statement/Prospectus of Baker Hughes and Western Atlas describing factors,
risks and uncertainties that relate to the forward-looking statements.
Baker Hughes is a leading supplier of reservoir-centered products,
services and systems to the worldwide oil and gas industry and is a leading
supplier of separation technologies to the worldwide process industries.
-30-
For further information: Gary R. Flaharty of Baker Hughes, 713-439-8039
or gary.flaharty@bakerhughes.com
|
