BHI First Quarter Operational Earnings $0.22 Per Share.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--April 23, 2002 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. Incorporated (NYSE NYSE See: New York Stock Exchange :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 )(PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. :BHI)(EBS See Swiss Electronic Bourse. EBS See electronic blue sheet (EBS). :BHI) announced today that net income, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("net income"), for the first quarter of 2002 was $33.3 million or $0.10 per share, which includes a $42.5 million after tax charge, or $0.12 per share, related to the cumulative effect of an accounting change resulting from the adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 142, Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. after tax, which excludes the impact of the accounting change, for the first quarter of 2002 was $75.8 million or $0.22 per share. Operating profit after tax for the first quarter of 2001 was $86.6 million or $0.26 per share and $145.6 million or $0.43 per share for the fourth quarter of 2001. These prior period results have been adjusted to exclude the impact of goodwill amortization for comparative purposes. The company adopted the new goodwill accounting standard as of Jan. 1, 2002. The $42.5 million charge, noted above, resulted from the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of all of the goodwill associated with its remaining Process Operations. A reconciliation of net income to operating profit for the prior periods is included in other sections of this news release. Revenue for the first quarter of 2002 was $1,260.9 million compared to $1,228.5 million for the first quarter of 2001 and $1,375.7 million for the fourth quarter of 2001. Oilfield revenue for the first quarter of 2002 was $1,189.1 million compared to $1,156.2 million for the first quarter of 2001 and $1,300.6 million for the fourth quarter of 2001. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. E. Wiley Wiley may refer to:
A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. levels of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. activity as well as events in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Our operational results for the quarter include approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $10 million, or $0.02 per share of costs and expenses from foreign exchange losses and other charges related to our operations in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. and Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. ." Commenting on the outlook for the balance of the year, Mr. Wiley continued, "We expect the second quarter to mark the low point of this cycle. Activity in the Eastern hemisphere Eastern Hemisphere Part of the Earth east of the Atlantic Ocean. It includes Europe, Asia, Australia, and Africa. Longitudes 20° W and 160° E are often considered its boundaries. is expected to improve modestly through the end of the year. As confidence strengthens that current price levels in the U.S. are sustainable, activity should increase in the U.S. by the third quarter and accelerate through yearend." Financial Information A table of comparative results follows:
Three Months Ended
-----------------------------------
(In millions, except per
share amounts) March 31, Dec. 31,
-----------------------------------
UNAUDITED 2002 2001 2001
--------- --------- ---------
Revenues $1,260.9 $1,228.5 $1,375.7
--------- --------- ---------
Costs and Expenses:
Costs of revenues 916.9 890.0 971.2
Selling, general and
administrative 214.1 203.2 201.8
Unusual charge (credit) -- 7.0 (2.0)
--------- --------- ---------
Total costs and
expenses 1,131.0 1,100.2 1,171.0
--------- --------- ---------
Operating income 129.9 128.3 204.7
Equity in income
of affiliates 13.0 10.5 6.9
Interest expense (28.4) (34.1) (29.5)
Interest income 1.2 1.4 9.3
--------- --------- ---------
Income before income
taxes and cumulative
effect of accounting
changes 115.7 106.1 191.4
Income tax (39.9) (35.8) (65.4)
--------- --------- ---------
Income before cumulative
effect of accounting
change 75.8 70.3 126.0
Cumulative effect
of accounting change (42.5) 0.8 --
--------- --------- ---------
Net income $33.3 $71.1 $126.0
========= ========= =========
Earnings per share:
Basic $0.10 $0.21 $0.37
Diluted 0.10 0.21 0.37
Shares outstanding,
basic (millions) 336.8 335.0 335.9
Shares outstanding,
diluted (millions) 338.1 337.6 337.0
Depreciation, depletion
and amortization expense
(excluding amortization
of goodwill in 2001) $79.1 $76.5 $81.2
========= ========= =========
Capital expenditures $62.3 $52.7 $114.3
========= ========= =========
Calculation of EBIT
and EBITDA:
Income before income
taxes $115.7 $106.1 $191.4
Interest expense 28.4 34.1 29.5
Unusual charge (credit) -- 7.0 (2.0)
Unusual charges recorded
in equity in income of
affiliates -- -- 10.3
--------- --------- ---------
Earnings before interest
expense and taxes
(EBIT) 144.1 147.2 229.2
Total depreciation,
depletion and
amortization
Expense(1) 79.1 89.3 95.5
--------- --------- ---------
Earnings before interest
expense, taxes,
depreciation, depletion
and amortization
(EBITDA) $223.2 $236.5 $324.7
========= ========= =========
(1) Prior periods have been adjusted to include amortization of
goodwill associated with equity method investments.
Consolidated Condensed Balance Sheets
UNAUDITED
(in millions) March 31, 2002 Dec. 31, 2001
======================================================================
ASSETS
Current Assets:
Cash and cash equivalents $41.5 $45.4
Accounts receivable, net 1,321.4 1,365.3
Inventories 1,062.0 1,049.8
Other current assets 238.1 236.7
----------------------------------------------------------------------
Total current assets 2,663.0 2,697.2
----------------------------------------------------------------------
Investment in affiliates 953.3 929.0
Property, net 1,366.9 1,375.8
Goodwill, net 1,232.2 1,260.4
Intangible assets, net 151.9 154.0
Other assets 247.9 259.8
----------------------------------------------------------------------
Total assets $6,615.2 $6,676.2
======================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $539.9 $573.0
Short-term borrowings and current
portion of long-term debt 13.7 12.2
Accrued employee compensation 210.6 318.8
Other current liabilities 279.6 308.4
----------------------------------------------------------------------
Total current liabilities 1,043.8 1,212.4
----------------------------------------------------------------------
Long-term debt 1,758.9 1,682.4
Deferred income taxes 200.7 210.3
Other long-term liabilities 257.6 243.3
Stockholders' equity:
Common stock 337.3 336.0
Capital in excess of par value 3,151.2 3,119.3
Retained earnings 176.9 182.3
Accumulated other comprehensive
loss (311.2) (309.8)
----------------------------------------------------------------------
Total stockholders' equity 3,354.2 3,327.8
----------------------------------------------------------------------
Total liabilities and
stockholders' equity $6,615.2 $6,676.2
======================================================================
Segment Highlights
Operational highlights for the three months ended March 31, 2002,
March 31, 2001 and Dec. 31, 2001 are detailed below.
Comparison of Quarters -- Year over Year
(for the three months ended March 31, 2002 and 2001)
UNAUDITED
Operating Profit
Revenue Before Tax
($ millions) ($ millions)
March March March March
2002 2001 2002 2001
-------- -------- ------ ------
Oilfield Operations,
excluding WesternGeco $1,189.1 $1,156.2 $167.5 $173.2
WesternGeco -- -- 11.9 9.9
-------- -------- ------ ------
Oilfield Operations 1,189.1 1,156.2 179.4 183.1
Process Operations 71.8 72.3 (1.6) (5.4)
Corporate, net interest
and other -- -- (62.1) (64.6)
Non-operational
items(1) -- -- -- (7.0)
-------- -------- ------ ------
Total $1,260.9 $1,228.5 $115.7 $106.1
======== ======== ====== ======
Comparison of Quarters -- Sequential
(for the three months ended March 31, 2002 and Dec. 31, 2001)
UNAUDITED
Operating Profit
Revenue Before Tax
($ millions) ($ millions)
March Dec. March Dec.
2002 2001 2002 2001
-------- -------- ------ ------
Oilfield Operations,
excluding WesternGeco $1,189.1 $1,300.6 $167.5 $245.7
WesternGeco -- -- 11.9 17.1
-------- -------- ------ -------
Oilfield Operations 1,189.1 1,300.6 179.4 262.8
Process Operations 71.8 75.1 (1.6) (4.5)
Corporate, net interest
and other -- -- (62.1) (58.6)
Non-operational items(1) -- -- -- (8.3)
-------- -------- ------ -------
Total $1,260.9 $1,375.7 $115.7 $191.4
======== ======== ====== =======
(1) See Reconciliation of GAAP Results and Operating Results.
Oilfield Operations Segment Unless otherwise noted, all comments in this section refer to Baker Hughes Oilfield Operations, excluding WesternGeco WesternGeco is the world's largest seismic contracting company. It is a combination of the former Geco-Prakla and Western Geophysical. The company is owned by international oilfield services corporation Schlumberger Limited. . The following table details the percentage change in revenue in the March 2002 quarter compared to the March 2001 quarter and December December: see month. 2001 quarter.
Comparison of Revenue
For the Three Months Ended March 31, 2002
Compared to the Three Months Ended
March 31, 2001 Dec. 31, 2001
-------------- -------------
Product Line
----------------------------------------------------------------------
Baker Hughes INTEQ 8% -4%
Baker Atlas 1% -4%
Baker Oil Tools 4% -13%
Baker Petrolite 5% -4%
Centrilift 2% -22%
Hughes Christensen -6% -12%
Geography
----------------------------------------------------------------------
North America -9% -12%
Western Hemisphere -10% -13%
Eastern Hemisphere 22% -4%
Revenue for the first quarter of 2002 increased 3% compared to the first quarter of 2001, and decreased 9% compared to the fourth quarter 2001. First quarter 2002 North American revenues were impacted by lower than anticipated activity in U.S. land operations and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . This weakness was partially offset by strong performance in certain offshore markets, particularly the deepwater Deepwater or Deep Water may refer to:
Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . The situations in Argentina and Venezuela resulted in weaker than expected revenues from Latin America. First quarter 2002 Oilfield Operations operating profit fell 3% compared to the first quarter of 2001 and fell 32% compared to the fourth quarter of 2001. Without the impact of the foreign exchange and other costs in Argentina and Venezuela, first quarter operating profits were up nearly 2% from the first quarter of 2001 and down 28% from the fourth quarter of 2001. First quarter results also reflect the company's strategy not to reduce its workforce to match current activity levels, preserving its ability to service customers following what is anticipated to be a short duration downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . Pricing remained generally stronger than anticipated, which helped offset the impact of the higher cost base. WesternGeco's profit contribution in the first quarter of 2002 increased 20% compared to the first quarter of 2001, but fell 30% compared to the fourth quarter of 2001. Weakness in the seismic industry continues as crew counts remain at historic lows. The first quarter 2002 operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 14% compares to 15% in the first quarter of 2001 and 19% in the fourth quarter of 2001. The operating margin for the first quarter was 15% without consideration of the foreign exchange and other costs in Argentina and Venezuela. Baker Value Added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. Using an internal benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. of 12% cost of capital, three divisions, Centrilift, Hughes Christensen The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. and Baker Oil Tools, were BVA BVA British Veterinary Association (London, UK) BVA Blinded Veterans Association BVA Board of Veterans' Appeals BVA Bond Van Adverteerders (Dutch Association of Advertisers) BVA British Video Association positive for the quarter. Two divisions, Baker Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. and INTEQ, were BVA positive excluding goodwill. Process Operations Process Operations first quarter 2002 revenues were flat compared to first quarter 2001 revenues, and down 4% compared to fourth quarter 2001. Weak demand for replacement and repair parts, and delays on a large order impacted revenues this quarter. While Process Operations posted a $1.6 million operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the March 2002 quarter, operating profits improved $2.9 million and $3.8 million compared to the December 2001 and March 2001 quarters, respectively. Corporate, Net Interest and Other Corporate, net interest and other expenses were $62.1 million in the March 2002 quarter, down $2.5 million compared to the March 2001 quarter and up $3.5 million compared to the December 2001 quarter. The improvement in the March 2002 quarter compared to the March 2001 quarter was primarily due to reduced net interest expense, partially offset by higher G&A costs and increased depreciation of the costs associated with the now completed Project Renaissance Renaissance (rĕnəsäns`, –zäns`) [Fr.,=rebirth], term used to describe the development of Western civilization that marked the transition from medieval to modern times. . The increase in corporate expenses in the current quarter compared to the December 2001 quarter is due to the recognition of interest income in the December quarter resulting from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. audit settlement with the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. , offset by lower interest expense and G&A costs in the current quarter. Outlook The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. Factors affecting these forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are detailed under Forward-Looking Statements. These statements do not include the potential impact of any acquisition, disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of , merger or joint venture that could occur in the future. Information regarding WesternGeco is based upon information that WesternGeco has provided to Baker Hughes. Information derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from this information is subject to the accuracy of the information that WesternGeco provided. Additionally, any forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc WesternGeco are also subject to the factors listed in Forward-Looking Statements in this news release.
-- Oilfield Operations revenues are expected to be down 3 to 5% for the year
2002 as compared to the year 2001. Oilfield Operations revenues are expected to
be flat to down slightly in the second quarter of 2002 compared to the first
quarter of 2002.
-- WesternGeco is expected to contribute $40 to $50 million in pre-tax profit
for the year 2002 and $5 to $10 million in the second quarter of 2002.
-- Process Operations is expected to post a breakeven to $3 million pre-tax
profit for the year 2002. Process Operations is expected to be slightly below
breakeven in the second quarter of 2002.
-- Corporate and other expenses, excluding interest expense, are expected to be
between $140 and $150 million for the year 2002 and approximately $35 to $40
million in the June 2002 quarter.
-- Net interest expense is expected to be between $100 and $110 million for the
year 2002 or approximately $25 to $28 million per quarter.
-- Operating profit after tax per share (diluted), excluding non-operational
items is expected to be between $1.00 and $1.10 for the year 2002. Operating
profit after tax per share (diluted), excluding non-operational items is
expected to be between $0.20 and $0.22 for the second quarter of 2002.
-- Capital spending is expected to be between $300 and $340 million for the
year 2002. Baker Hughes' expectation regarding its level of capital
expenditures is only its forecast regarding this matter. This forecast may be
substantially different from actual results. In addition to the factors
described in Forward-Looking Statements-General Outlook, the following factors
could affect levels of capital expenditures: the accuracy of the company's
estimates regarding its spending requirements; the occurrence of any
unanticipated acquisition or research and development opportunities; changes in
the company's strategic direction; and the need to replace any unanticipated
losses in capital assets.
-- Depreciation and amortization expense is expected to be between $330 and
$350 million for 2002. Baker Hughes' expectation regarding its depreciation and
amortization expense is only its forecast regarding this matter. This forecast
may be substantially different from actual results, which could be impacted by
an unexpected increase in the company's assets that are subject to depreciation
or amortization or an unexpected casualty, impairment or other loss in those
assets.
-- The effective tax rate on operating results for the 12 months ended Dec. 31,
2002 is expected to be approximately 34.5%. Baker Hughes' expectation regarding
its tax rate is only its forecast regarding this matter. This forecast may be
substantially different from actual results. In addition to the factors
described in Forward-Looking Statements-General Outlook, the following factors
could affect the tax rate: the level and sources of the profitability of the
company; changes in tax laws or tax rates in the jurisdictions in which the
company operates; and the ability of the company to fully utilize tax loss
carry-forwards and credits in various jurisdictions.
Impact of SFAS 142 on Prior Year Operating Results
The following table is a reconciliation of previously reported
operating profit and earnings per share to the pro forma amounts,
which are adjusted for the exclusion of amortization related to
goodwill and goodwill associated with equity method investments.
(in millions, except Operating Operating Diluted
earnings per share) Profit Income Profit Earnings
UNAUDITED before Tax Taxes after Tax per Share
----------------------------------------------------------------------
Q1 2001 Operating profit $113.1 $(37.9) $75.2 $0.22
Goodwill amortization 10.8 (1.3) 9.5 0.03
Goodwill amortization
associated with
equity method
investments 2.0 (0.1) 1.9 0.01
------ ------ ------ ------
Pro forma
operating profit 125.9 (39.3) 86.6 0.26
====== ====== ====== ======
Q2 2001 Operating profit 158.4 (53.1) 105.3 0.31
Goodwill amortization 10.8 (1.3) 9.5 0.03
Goodwill amortization
associated with
equity method
investments 2.0 (0.1) 1.9 0.01
------ ------ ------ ------
Pro forma
operating profit 171.2 (54.5) 116.7 0.35
====== ====== ====== ======
Q3 2001 Operating profit 202.5 (67.8) 134.7 0.40
Goodwill amortization 10.7 (1.3) 9.4 0.03
Goodwill amortization
associated with
equity method
investments 1.9 (0.1) 1.8 --
------ ------ ------ ------
Pro forma
operating profit 215.1 (69.2) 145.9 0.43
====== ====== ====== ======
Q4 2001 Operating profit 199.7 (66.9) 132.8 0.39
Goodwill amortization 12.3 (1.4) 10.9 0.03
Goodwill amortization
associated with
equity method
investments 2.0 (0.1) 1.9 0.01
------ ------ ------ ------
Pro forma
operating profit 214.0 (68.4) 145.6 0.43
====== ====== ====== ======
2001 Operating profit 673.7 (225.7) 448.0 1.33
Goodwill amortization 44.6 (5.3) 39.3 0.12
Goodwill amortization
associated with
equity method
investments 7.9 (0.4) 7.5 0.02
------ ------ ------ ------
Pro forma
operating profit 726.2 (231.4) 494.8 1.47
====== ====== ====== ======
Reconciliation of GAAP Results and Operating Results
The following tables reconcile GAAP and operating results
referenced in this news release. Reconciliations of other prior
periods can be found on the company's Web site at
www.bakerhughes.com/investor.
Reconciliation of GAAP Results and Operating Results for the
3 Months Ended Dec. 31, 2001
----------------------------------------------------------------------
UNAUDITED Profit Profit Diluted
(in millions except Recorded Before After Earnings
earnings per share) As Tax Tax Tax Per Share
----------------------------------------------------------------------
Net income $191.4 $(65.4) $126.0 $0.37
Non-operational items:
Reversal of excess
E&P unusual charges unusual credit (4.2) -- (4.2) (0.01)
Charge related to
E&P ceiling test unusual charge 2.2 (1.5) 0.7 --
WesternGeco
non-recurring
charge equity in income
of affiliates 10.3 -- 10.3 0.03
----------------------------------------------------------------------
Operating profit,
excluding impact of
non-operational items $199.7 $(66.9) $132.8 $0.39
======================================================================
Reconciliation of GAAP Results and Operating Results for the
3 Months Ended March 31, 2001
----------------------------------------------------------------------
UNAUDITED Profit Profit Diluted
(in millions except Recorded Before After Earnings
earnings per share) As Tax Tax Tax Per Share
----------------------------------------------------------------------
Income before
cumulative effect
of accounting
change $106.1 $(35.8) $70.3 $0.21
Non-operational items:
Severance at Baker
Process Germany unusual charge 6.0 (2.2) 3.8 0.01
Loss on sale of Baker
Atlas product line unusual charge 1.0 0.1 1.1 --
--------------------------------------------------------------------
Operating profit,
excluding impact of
non-operational items $113.1 $(37.9) $75.2 $0.22
====================================================================
Conference Call The company has scheduled a conference call to discuss the results of today's earnings announcement. The call will begin at 8:30 A.M. Eastern time, 7:30 A.M. Central time on Tuesday Tuesday: see week. , April 23, 2002. To access the call, which is open to the public, please contact the conference call operator at 630/395-0017, 20 minutes prior to the scheduled start time, and ask for the "Baker Hughes Conference Call." A replay will be available through Tuesday, April 30, 2002. The number for the replay is 402/220-4625. The call and replay will also be Webcast on www.bakerhughes.com/investor. Forward-Looking Statements This news release (and oral statements made regarding the subjects of this release, including on the conference call announced herein) contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "expected," "intends," "should," "will," and similar expressions are intended to identify forward-looking statements. General Outlook - Oilfield Operations: Baker Hughes' expectation regarding its outlook for its oilfield businesses (including, without limitation, the company's oilfield operations and its minority interest in its production and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar process equipment venture), improved profitability and growth in those businesses and the oil and gas industry are only its forecasts regarding these matters. These forecasts may be substantially different from actual results, which are affected by the following factors: the effect of competition; the level of petroleum industry exploration and production expenditures; drilling rig and oil and gas industry manpower and equipment availability; the company's ability to implement and effect price increases for its products and services; the company's ability to control its costs; the availability of sufficient manufacturing capacity and subcontracting capacity at forecasted costs to meet the company's revenue goals; the ability of the company to introduce new technology on its forecasted schedule and at its forecasted cost; the ability of the company's competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. to capture market share; world economic conditions; the price of, and the demand for, crude oil and natural gas; drilling activity; weather; the legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries in which the company operates; OPEC OPEC: see Organization of Petroleum Exporting Countries. OPEC in full Organization of the Petroleum Exporting Countries Multinational organization established in 1960 to coordinate the petroleum production and export policies of its policy; war or extended period of conflict involving the United States, Middle East or other major petroleum-producing or consuming regions; the development of technology that lowers overall finding and development costs; the condition of the capital and equity markets and the timing of any of the foregoing. Oilfield Pricing Improvement: Baker Hughes expectation's regarding pricing improvements for its products and services are only its expectations regarding pricing. Actual pricing improvement could be substantially different from the company's expectations, which are affected by many of the factors listed above in "General Outlook - Oilfield Segment," as well as existing legal and contractual commitments to which the company is subject. General Outlook - Process Operations: Baker Hughes' expectations in this news release regarding its outlook for its process segment and improvement and growth in Process' businesses and its markets are only its forecasts regarding these matters. These forecasts may be substantially different from actual results, which are affected by the following factors: the effect of competition; the health of the markets of the company's customers, including, without limitation, the production and refining, industrial, chemical, municipal wastewater Wastewater is any water that has been adversely affected in quality by anthropogenic influence. It comprises liquid waste discharged by domestic residences, commercial properties, industry, and/or agriculture and can encompass a wide range of potential contaminants and and mining markets; the level of customer expenditures and investment, especially in the oil and gas, industrial, chemical, municipal wastewater and mining markets; the company's ability to control its costs; the ability of the company's competitors to capture market share; world economic conditions; the legislative and regulatory environment in the United States and other countries in which the company operates; the condition of the capital and equity markets and the timing of any of the foregoing. Baker Hughes is a leading provider of drilling, formation evaluation In petroleum exploration and development, formation evaluation is used to determine whether a potential oil or gas field is commercially viable. Essentially, it is the process of "recognizing a commercial well when you drill one". , completion and production products and services to the worldwide oil and gas industry. NOT INTENDED FOR BENEFICIAL HOLDERS |
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