BHI EARNINGS PER SHARE UP 50 PERCENT IN THIRD QUARTER.HOUSTON--(BUSINESS WIRE)--July 26, 1995--Baker Hughes Incorporated (BHI BHI Baker Hughes Incorporated BHI Brain Heart Infusion (agar) BHI Better Hearing Institute BHI British Horological Institute (UK) BHI Boots Healthcare International BHI Branch If Higher - NYSE NYSE See: New York Stock Exchange , PSE PSE 1. pale soft exudative pork. 2. portosystemic encephalopathy. , Zurich) Chairman, President and Chief Executive Officer, J.D. Woods today announced results for the fiscal third quarter ended June June: see month. 30, 1995. Net income was $32.2 million, or $.21 per share before the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , compared to operational net income of $22.0 million, or $.14 per share, in the same quarter a year ago representing a 50 percent increase in operational earnings per share. Revenues for the quarter were $668.4 million, up $77.9 million, or 13 percent, from the June 1994 quarter. Baker Hughes Baker Hughes NYSE: BHI is the world's third-largest oilfield services company behind Schlumberger & Halliburton, its main competitors. Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion and production. Oilfield Operations reported a 12 percent increase in revenue to $575 million in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a 4 percent decline in worldwide rig activity. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the oilfield improved to 12 percent from 9.6 percent in the prior year led by Baker Hughes INTEQ Baker Hughes INTEQ is among the world's leading oilfield drilling service companies. INTEQ was formed from the legacy companies of Eastman Christensen, Teleco MWD, Milchem and EXLOG, which were acquired by Baker Hughes Incorporated in the late 1980s. which reported operating margins of 10.4 percent compared to 6.1 percent the previous year. Revenue from integrated solutions (IS) continues to be an increasingly important segment and is now expected to exceed $225 million for the fiscal year, more than a 100 percent increase in IS revenues from 1994. Baker Hughes Process Equipment Operations reported a 23 percent increase in revenue to $86 million with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. almost doubling to $8.4 million. We believe these results validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our strategic decision to form Baker Hughes INTEQ in mid 1993. We continue to be the leader in the rapidly growing integrated solutions market which has enabled us to both improve operating margins and increase market share, Woods stated. In spite of relatively soft oil and gas prices we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects over the remainder of the calendar year, Woods added. During the quarter Baker Hughes repurchased the shares of its convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". previously issued to Sonat Sonat, Inc. was an American energy holding company, primarily involved in natural gas, oil and electric exploration and production. The company was headquartered in Birmingham, Alabama and was acquired by El Paso Corporation in 1999, after "major divestments" to maintain , Inc. for $167.0 million. The estimated fair market value of the shares of convertible preferred stock was $149.4 million at the date of issuance. The repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. price in excess of this amount ($17.6 million) has been deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from net income in arriving at net income per share of common stock Net income per share of common stock See: Earnings per share for the three months ended June 30, 1995. The $17.6 million excess equates to $.12 per share of common stock. The Baker Hughes Board declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. the regular quarterly cash dividend of $.115 per share of common stock payable August 25, 1995 to holders of record August 7, 1995. -0- A table of comparative results follow:
(In thousands of dollars, except per share amounts)
Three Months Ended
June 30,
1995 1994
-------------------------
REVENUES:
Sales $ 459,216 $ 400,324
Services and rentals 209,188 190,208
--------- ----------
Total revenues 668,404 590,532
--------- ----------
COSTS AND EXPENSES:
Cost of sales 271,958 231,771
Cost of services and rentals 100,425 96,961
Research and engineering 20,855 22,641
Marketing and field service 150,671 138,866
General and administrative 49,934 45,140
Amortization of goodwill and other
intangibles 7,149 7,572
Unusual credit (19,281)
Operating income of business held
for sale (6,005)
--------- ----------
Total costs and expenses 600,992 517,665
Operating income 67,412 72,867
Interest expense (13,791) (16,170)
Interest income 1,546 501
--------- ----------
Income before income taxes 55,167 57,198
Income taxes (22,925) (22,759)
--------- ----------
Income before extraordinary loss and
cumulative effect of accounting
changes 32,242 34,439
Extraordinary loss (net of $6,347
income tax benefit) (11,788)
Cumulative effect of accounting changes:
Income taxes
Postretirement benefits other than
pensions (net of $37,488 income
tax benefit)
Postemployment benefits (net of
$7,861 income tax benefit)
Accounting changes - net
--------- ----------
Net income $ 32,242 $ 22,651
========= =========
Per share of Common Stock:
Income before extraordinary loss
and cumulative effect of
accounting changes (A) $ .09 $ .22
Extraordinary loss (.08)
Cumulative effect of accounting
changes
Net income (A) $ .09 $ .14
========= =========
Average Share Outstanding During
Period (In thousands) 141,163 140,476
========= =========
Nine Months Ended
June 30,
1995 1994
---------------------------
REVENUES:
Sales $1,318,425 $1,287,111
Services and rentals 609,505 577,999
---------- ----------
Total revenues 1,927,930 1,865,110
---------- ----------
COSTS AND EXPENSES:
Cost of sales 772,307 753,598
Cost of services and rentals 295,364 287,606
Research and engineering 61,702 70,061
Marketing and field service 444,752 433,923
General and administrative 151,538 150,060
Amortization of goodwill and other
intangibles 22,489 23,037
Unusual credit (19,281)
Operating income of business held
for sale (6,005)
--------- ----------
Total costs and expenses 1,748,152 1,692,999
--------- ----------
Operating income 179,778 172,111
Interest expense (38,971) (47,949)
Interest income 3,621 2,289
--------- ----------
Income before income taxes 144,428 126,451
Income taxes (59,955) (51,845)
--------- ----------
Income before extraordinary loss and
cumulative effect of accounting
changes 84,473 74,606
--------- ----------
Extraordinary loss (net of $6,347
income tax benefit) (11,788)
----------
Cumulative effect of accounting changes:
Income taxes 25,455
Postretirement benefits other than
pensions (net of $37,488 income
tax benefit) (69,620)
Postemployment benefits (net of
$7,861 income tax benefit) (14,598)
--------- ----------
Accounting changes - net (14,598) (44,165)
--------- ----------
Net income $ 69,875 $ 18,653
========= ==========
Per share of Common Stock:
Income before extraordinary loss
and cumulative effect of
accounting changes (A) $ .42 $ .46
Extraordinary loss (.08)
Cumulative effect of accounting
changes (.10) (.32)
--------- ---------
Net income (A) $ .32 $ .06
========= =========
Average Share Outstanding During
Period (In thousands) 141,057 140,454
========= =========
(A) During the quarter ended June 30, 1995, the Company repurchased shares of its convertible preferred stock previously issued to Sonat, Inc. for $167.0 million. The estimated fair market value of the shares of convertible preferred stock was $149.4 million at the date of issuance. The repurchase price in excess of this amount ($17.6 million) has been deducted from net income in arriving at net income per share of common stock for the three and nine months ended June 30, 1995. In addition, the per share amount for the three and nine months ended June 30, 1995 has been adjusted for dividends on the preferred stock of $2.0 million and $8.0 million, respectively, and the per share amount for the three and nine months ended June 30, 1994 has been adjusted for dividends on the preferred stock of $3.0 million and $9.0 million, respectively. Baker Hughes is a leading provider of products and services for the oil, gas and process industries. -0- NOTE TO EDITORS: NOT INTENDED FOR DISTRIBUTION TO BENEFICIAL HOLDERS CONTACT: Baker Hughes Scott Gill gill, in weights and measures gill, in weights and measures: see English units of measurement. , 713/439-8668. |
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