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FOR IMMEDIATE RELEASE Contact -Guy T. Marcus
October 27, 1994 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON REPORTS SUBSTANTIALLY IMPROVED EARNINGS
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today
reported net income of $51.7 million, or $.45 per share, for
the 1994 third quarter reflecting substantial improvement in
profitability by its Halliburton Energy Services business
segment.
In the preceding year's third quarter, Halliburton
reported a net loss of $160.7 million, or $1.41 per share.
The 1993 third quarter earnings were reduced by $193.6
million, or $1.70 per share, due to charges primarily related
to the divesture of the company's geophysical business.
The Halliburton Energy Services business segment's 1994
third quarter revenues were $642.8 million, a decline of 12
percent from the year ago period. Virtually all of the
revenue decline was due to the divestiture of the geophysical
business at the beginning of 1994. Also, the segment
strategically reduced non-profitable business activity during
the 1994 third quarter, which reduced revenues somewhat but
enhanced profitability.
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Halliburton Energy Services' operating income advanced
sharply in the 1994 third quarter to $82.0 million. Strategic
action plans implemented during the past 18 months have
resulted in improved organizational efficiencies and a lower
cost structure. The 1994 third quarter operating profit
margin was 12.8 percent, the highest operating margin achieved
by the segment since 1984. In the 1993 third quarter,
Halliburton Energy Services reported an operating loss of
$192.6 million, after recognizing $250.8 million of charges
and losses relating to the geophysical business sold in early
1994.
The Engineering and Construction Services business
segment's 1994 third quarter revenues were $704.8 million, a
decline of six percent compared to the year earlier period.
However, the segment's operating income improved to $20.3
million in the 1994 third quarter, an increase of 43 percent,
reflecting improved profitability of the Brown & Root
subsidiary's government services, petroleum and chemical,
energy services and civil business units.
The Insurance Services business segment reported $1.8
million of operating income in the 1994 third quarter. In the
1993 third quarter, an operating loss of $26.6 million was
reported, following a charge of $32.3 million for claims loss
reserves and expenses relating to a suspension of underwriting
activities by a United Kingdom subsidiary.
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Thomas H. Cruikshank, chairman of the board and chief
executive officer of Halliburton Company, commented, "The
performance of the Halliburton Energy Services business
segment was particularly outstanding. After a long period of
restructuring, downsizing, and implementing cost efficiency
initiatives, we are now seeing solid financial gains from the
actions taken. We expect these performance benefits to be
sustainable and apparent in the 1994 fourth quarter and future
periods. As we enter 1995, we can expect to see a full year
of benefits from those actions, and from others that are
currently being implemented. The outlook for the Engineering
and Construction business segment is also positive for 1995,
because many new opportunities are developing as the worldwide
economy improves. I fully believe that Halliburton is finally
on a solid path for continued profitability improvement. We
are now able to respond more quickly to market changes and we
expect good performance regardless of market conditions. This
is demonstrated by the strong performance in the 1994 third
quarter which had a relatively modest level of market activity
on a seasonal basis."
Halliburton Company is one of the world's largest
diversified energy services, engineering, maintenance, and
construction companies. Founded in 1919, Halliburton provides
a broad range of energy services and products, industrial and
marine engineering and construction services, and property and
casualty insurance services.
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HALLIBURTON COMPANY
Quarter Ended Nine Months Ended
September 30, September 30,
--------- --------- ---------- ----------
1994 1993 1994 1993
--------- --------- ---------- ----------
Millions of dollars except per share data
Revenues
Energy services $ 642.8 $ 733.6 $ 1,847.4 $ 2,121.8
Engineering and
construction services 704.8 746.3 2,185.1 2,384.3
Insurance services 57.8 61.5 174.6 191.4
--------- --------- ---------- ----------
Total revenues $1,405.4 $1,541.4 $ 4,207.1 $ 4,697.5
========= ========= ========== ==========
Operating income (loss)
Energy services $ 82.0 $ (192.6) $ 95.7 $ (119.3)
Engineering and
construction services 20.3 14.1 46.2 56.1
Insurance services 1.8 (26.6) (0.4) (29.8)
General corporate expenses (5.5) (5.4) (17.6) (17.2)
--------- --------- ---------- ----------
Total operating income (loss) 98.6 (210.5) 123.9 (110.2)
Interest expense (12.6) (13.9) (33.6) (36.1)
Interest income 2.6 3.2 8.4 9.8
Foreign currency losses (2.1) (7.5) (15.3) (17.8)
Other nonoperating, net (0.8) 0.2 0.4 0.4
--------- --------- ---------- ----------
Income (loss) before income taxes
and minority interest 85.7 (228.5) 83.8 (153.9)
Benefit (provision) for
income taxes (34.3) 67.4 (33.5) 33.8
Minority interest 0.3 0.4 - 1.1
--------- --------- ---------- ----------
Net income (loss) $ 51.7 $ (160.7) $ 50.3 $ (119.0)
========= ========= ========== ==========
Income (loss) per share $ 0.45 $ (1.41) $ 0.44 $ (1.06)
Average common and common
share equivalents outstanding 114.2 114.1 114.2 111.9
* Per share amounts are based upon average number of common and common
share equivalents outstanding.