FOR IMMEDIATE RELEASE Contact- Guy T. Marcus
July 25, 1995 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON REPORTS SUBSTANTIALLY IMPROVED
1995 SECOND QUARTER EARNINGS
DALLAS, Texas -- Halliburton Company (NYSE-HAL) today reported that 1995
second quarter net income was $56.2 million, or 49 cents per share. Second
quarter earnings reflect improved profitability at the company's two core
business segments -- Halliburton Energy Services and Engineering and
Construction. The 1995 earnings compare to a loss of $19.2 million, or 17 cents
per share, in the 1994 second quarter, which included $38.1 million, or 33 cents
per share, of after tax non-recurring costs relating to personnel reductions and
two significant engineering and construction job losses.
The Halliburton Energy Services business segment's revenues were $629.6
million in the 1995 second quarter, an increase of 4 percent compared to the
year ago quarter. Revenues for the 1995 second quarter increased 7 percent,
excluding businesses included in 1994 results but subsequently sold. Slightly
lower 1995 revenues in the United States were offset by a 14 percent increase in
international revenues, reflecting growth in the Latin America, Europe/Africa
and Asia Pacific markets.
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Halliburton Energy Services' operating income increased to $71.2 million in
the 1995 second quarter. A loss of $19.8 million was reported in last year's
second quarter, after $42.6 million of charges for personnel reductions. The
1995 second quarter operating margin was 11.3 percent, the highest second
quarter margin in over a decade.
The Engineering and Construction business segment, operated by the
company's Brown & Root subsidiary, had revenues of $768.0 million in the 1995
second quarter compared to $764.1 million a year ago. Both operating income and
operating margins rose sharply to $33.5 million and 4.4 percent, respectively.
The increased earnings were primarily the result of improved performance by the
Brown & Root Energy Services business unit.
The Insurance Services business segment reported 1995 second quarter
operating income of $2.3 million, compared to a small operating loss a year ago.
The 1995 second quarter results benefitted from reduced underwriting losses from
discontinued lines of business.
Thomas H. Cruikshank, chairman of the board and chief executive officer of
Halliburton Company, said, "The strong financial results reported in the 1995
second quarter reflect a continuation of a trend which commenced a year ago.
Over the past 12 months, Halliburton has produced earnings of $1.84 per share,
excluding a $.56 per share gain on the sale of a business unit, and year to year
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operating improvements have been noted with each passing quarter. These results
reflect successful organizational changes and new strategic initiatives designed
to increase the company's opportunities in a dynamic market environment. I am
optimistic that Halliburton is on track to continue to build upon these
improvements in the future."
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 Six Months Ended
June 30, June 30,
--------- --------- --------- ---------
1995 1994 1995 1994
--------- --------- --------- ---------
Millions of dollars except per share data
Revenues
Energy services $ 629.6 $ 605.6 $1,198.6 $1,204.6
Engineering and
construction services 768.0 764.1 1,472.9 1,480.3
Insurance services 46.9 55.7 95.1 116.8
--------- --------- --------- ---------
Total revenues $1,444.5 $1,425.4 $2,766.6 $2,801.7
========= ========= ========= =========
Operating income (loss)
Energy services $ 71.2 $ (19.8) $ 123.6 $ 13.7
Engineering and
construction services 33.5 11.4 49.3 25.9
Insurance services 2.3 (0.1) 2.7 (2.2)
General corporate
expenses (7.3) (6.4) (13.6) (12.1)
--------- --------- --------- ---------
Total operating
income (loss) 99.7 (14.9) 162.0 25.3
Interest expense (12.3) (11.0) (25.1) (21.0)
Interest income 5.7 3.0 14.3 5.8
Foreign currency
gains (losses) (1.4) (9.9) 3.6 (13.2)
Other nonoperating, net 0.1 0.7 0.2 1.2
--------- --------- --------- ---------
Income (loss) before income taxes
and minority interest 91.8 (32.1) 155.0 (1.9)
Benefit (provision)
for income taxes (34.9) 12.9 (58.9) 0.8
Minority interest (0.7) - (0.8) (0.3)
--------- --------- --------- ---------
Net income (loss) $ 56.2 $ (19.2) $ 95.3 $ (1.4)
========= ========= ========= =========
Income (loss) per share $ 0.49 $ (0.17) $ 0.83 $ (0.01)
Average common and common share
equivalents outstanding 114.4 114.1 114.4 114.2
* Per share amounts are based upon average number of common and common share
equivalents outstanding.
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