Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Platter who wrote (33635)	12/28/1998 7:04:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

SOURCE: Halliburton Company Halliburton Items Affecting 1998 Fourth Quarter DALLAS, Dec. 28 /PRNewswire/ -- Halliburton Company (NYSE: HAL - news) today announced that it plans to take a $35 million pretax ($24 million after tax or $ .05 per diluted share) special charge in the 1998 fourth quarter to provide for a reduction of an additional 2,750 employees from its Energy Services Group business segment. This employment reduction is in response to the business impact of low crude oil prices and oil company customers' plans to sharply reduce spending in 1999. A number of customers, for whom the company is working on projects in the North Sea, North Africa and Latin America, have been negatively impacted by the current low oil price market environment. As a result, these customers have restricted their capital spending and they have recently placed extraordinary pressure on the project claims resolution process and are now rejecting some of the company's claims for additional cost incurred by the company. This is in stark contrast to more favorable negotiating strategies employed by such customers only months ago which might have resulted in more equitable resolution to these types of claims. The same economic pressures have more dramatically impacted some of the company's joint venture partners and major subcontractors in several of these projects. Their inability to maintain their share of the contractual cost, schedule and financial obligations of such projects has placed additional financial burdens on the company. These pressures have become more acute in the 1998 fourth quarter and particularly affect contracts in the Brown & Root Energy Services business unit. Consequently, the company determined that in accordance with generally accepted accounting principles, it will provide $60 million pretax for project losses in the 1998 fourth quarter. Although the quarter has not yet been completed, after taking into account the personnel reduction special charges and recognizing costs relating to the project losses, Halliburton now expects to earn about $ .14 to $ .16 per diluted share in the 1998 fourth qua