Baker Hughes Announces Actions in Response to Revised Outlook.HOUSTON--(BUSINESS WIRE)--Dec. 1, 1999-- Baker Hughes 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 several actions intended to help position the company for the future. Nonrecurring Charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". The company indicated that its operating results, particularly in its seismic and process businesses, are likely to be weaker than previous expectations and could result in a small 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. for the company as a whole in the three months ending Dec. 31, 1999. In view of the company's assessment of the seismic market, the company recognized a pre-tax charge of approximately $130 million in December 1999. The charge is related primarily to the disposition or idling of certain marine, ocean bottom cable and land seismic acquisition assets. Components of the charge included approximately $54 million related to marine operations, $48 million related to ocean bottom cable operations and $11 million related to land based operations. The balance of the pre-tax charge relates primarily to employee severance costs. Management Change Timothy L. Davis has been appointed president, Baker Process effective Dec. 1, 1999. Davis has a Bachelor of Science Noun 1. Bachelor of Science - a bachelor's degree in science BS, SB bachelor's degree, baccalaureate - an academic degree conferred on someone who has successfully completed undergraduate studies degree in civil engineering from the University of Texas and a Bachelor of Arts degree in business administration from Rice University and was employed by Westinghouse Electric Corporation before he joined Baker Hughes in 1977. Davis served as vice president, operations for Baker Process since 1998 and served as president of Bird Machine Company from 1989 to 1998. Davis will succeed Matthew G. Dick who is retiring from Baker Hughes. Director Resignation Alton J. Brann, chairman and president of UNOVA Inc and member of the Baker Hughes board of directors since August 1998, has resigned from the board effective Dec. 31, 1999. Tuboscope Inc. Holdings The company also announced today that it intends to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose its holdings of Tuboscope Inc. (NYSE:TBI TBI 1. Thyroxine-binding index 2. Total body irradiation ) and for reporting purposes has reclassified the investment and recognized the unrealized gain. As a result of this decision, the company will recognize a pre-tax unusual gain of approximately $29 million in the three months ending Dec. 31, 1999. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The phrases "to be" and "could result" and similar expressions are intended to identify forward-looking statements. Baker Hughes' expectations regarding its operational results are only its forecasts regarding these results. 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; world economic conditions; price of, and the demand for, crude oil and natural gas; drilling activity; weather; the legislative environment in the United States and other countries; 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; conflict in the Middle East and other major petroleum-producing or consuming regions, the development of technology that lowers overall finding and development costs and the condition of the capital and equity markets. 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. NOT INTENDED FOR BENEFICIAL HOLDERS |
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