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FOR IMMEDIATE RELEASE Contact - Guy T. Marcus
February 1, 1995 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON REPORTS STRONG 1994 FOURTH QUARTER
DALLAS, Texas -- Halliburton Company reported today 1994
fourth quarter net income of $127.5 million ($1.12 per share),
reflecting a combination of strong performance improvement by its
Energy Services business segment and a gain on the sale of its
natural gas compression business unit. Excluding the $64.3
million after tax gain on the sale, net income was $63.2 million
($.56 per share). Halliburton's 1994 fourth quarter earnings
per share, excluding the gain on the sale, is the highest since
the 1985 third quarter.
In comparison, the 1993 fourth quarter Halliburton results
were a net loss of $42.0 million ($.37 per share).
For the 1994 full year, Halliburton's net income was $177.8
million ($1.56 per share). Excluding the fourth quarter gain on
the sale of the natural gas compression business and $38.1
million ($.33 per share) of after tax non-recurring costs in the
second quarter related to personnel reductions and two
significant engineering and construction job losses, 1994
net income was $151.6 million ($1.33 per share). In 1993
Halliburton had a net loss of $161.0 million ($1.43 per
share).
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The Energy Services business segment's 1994 fourth quarter
revenues were $666.6 million compared to $831.6 million in the
1993 fourth quarter. The prior year quarter included $120.2
million of revenues associated with the geophysical business
which was sold at the beginning of 1994.
The Energy Services segment's operating income increased
substantially to $95.4 million for the 1994 fourth quarter, the
highest since 1984, reflecting successful implementation of
strategic action plans that have continued to lower the segment's
cost structure and improve organizational efficiencies. The 1994
fourth quarter operating profit margin was 14.3 percent, the
highest quarterly margin achieved by the segment over the past
decade. This compares to the 1993 fourth quarter reported
operating loss of $28.4 million.
The Engineering and Construction Services business segment's
revenues were $811.1 million in the 1994 fourth quarter, seven
percent higher than the year ago quarter. The revenues reflect
strong growth by the Brown & Root Energy Services and Brown &
Root Services Corp. business units. Operating income was $21.0
million in the 1994 fourth quarter compared to $23.2 million in
the prior year's fourth quarter. Year end 1994 firm order
backlogs increased 14 percent to $3.8 billion, compared to year
end 1993.
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Thomas H. Cruikshank, chairman of the board and chief
executive officer of Halliburton Company, stated, "The
outstanding fourth quarter operating results of the Halliburton
Energy Services segment occurred in a lackluster petroleum
industry marketplace. This performance confirms that the dramatic
improvements we achieved during the 1994 third quarter are
sustainable. It is likely that the United States energy
services' market in 1995 will decline as a result of lower
natural gas prices. However, we expect increased demand in
international markets because of higher oil prices. In addition,
the improvement in earnings in the second half of 1994 caused by
reduced costs, enhanced process efficiencies and renewed customer
focus will carry over and benefit full year 1995 financial
results. Brown & Root's engineering and construction business
should also experience a better 1995.
Consequently, we enter 1995 with confidence that we will
achieve year-to-year improvement, even in a worldwide energy
market that will likely be flat to slightly down in activity
levels."
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 Twelve Months Ended
December 31, December 31,
--------- --------- ---------- ----------
1994 1993 1994 1993
--------- --------- ---------- ----------
Millions of dollars except per share data
Revenues
Energy services $ 666.6 $ 831.6 $ 2,514.0 $ 2,953.4
Engineering and
construction
services 811.1 756.4 2,996.2 3,140.7
Insurance services 55.7 65.3 230.3 256.7
--------- --------- ---------- ----------
Total revenues $1,533.4 $1,653.3 $ 5,740.5 $ 6,350.8
========= ========= ========== ==========
Operating income (loss)
Energy services $ 95.4 $ (28.4) $ 191.1 $ (147.7)
Engineering and
construction
services 21.0 23.2 67.2 79.3
Insurance services - (12.4) (0.4) (42.2)
General corporate
expenses (5.3) (4.8) (22.9) (22.0)
--------- --------- ---------- ----------
Total operating
income (loss) 111.1 (22.4) 235.0 (132.6)
Interest expense (13.5) (14.0) (47.1) (50.1)
Interest income 7.8 4.1 16.2 13.9
Foreign currency losses (0.3) (3.2) (15.6) (21.0)
Gain on sale of compression
business 102.0 - 102.0 -
Other nonoperating, net - 0.3 0.4 0.7
--------- --------- ---------- ----------
Income (loss) before income taxes and
minority interest 207.1 (35.2) 290.9 (189.1)
Benefit (provision) for
income taxes (79.4) (7.2) (112.9) 26.6
Minority interest (0.2) 0.4 (0.2) 1.5
--------- --------- ---------- ----------
Net income (loss) $ 127.5 $ (42.0) $ 177.8 $ (161.0)
========= ========= ========== ==========
Income (loss) per
share* $ 1.12 $ (0.37) $ 1.56 $ (1.43)
Average common and common
share equivalents
outstanding 114.2 114.1 114.2 112.5
* Per share amounts are based upon average number of common and
common share equivalents outstanding.