FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
April 22, 1996 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON REPORTS 35 PERCENT EARNINGS INCREASE
DALLAS, Texas -- Halliburton Company (NYSE-HAL) today announced that 1996
first quarter earnings from continuing operations increased 35 percent to $51.5
million or 45 cents per share, compared to $38.3 million or 33 cents per share,
in the first quarter of 1995. The company reported revenues of $1.7 billion for
the first quarter of 1996, a 30 percent increase over the 1995 first quarter
revenues.
Halliburton's continuing operations include two business segments -- Energy
Services and Engineering and Construction Services -- and both reported
increased 1996 revenues and operating income compared to the first quarter of
the prior fiscal year. The company's insurance business, classified as
discontinued operations, was spun-off to Halliburton shareholders in a tax-free
distribution on January 23, 1996.
Halliburton Energy Services' revenues climbed 17 percent from a year ago to
$663 million for the quarter, while at the same time operating income rose 29
percent to $67.3 million. Revenue growth was attributable to overall
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strengthening of the upstream oil and gas market, the segment's stronger
competitive position and benefits from commercialization of new technologies.
Strongest growth came from Halliburton's North America, Europe/Africa and Latin
America regions. Halliburton Energy Services' operating margin for the quarter
improved to 10.1 percent compared to 9.2 percent a year ago. The segment's 1996
first quarter operating income and operating margin were the highest first
quarter financial results in more than a decade, reflecting a combination of
improved internal operating efficiencies and somewhat stronger market
conditions.
For Brown & Root, Halliburton's engineering and construction business
segment, revenues increased 42 percent from a year ago to $998 million for the
1996 first quarter. Growth was experienced in all major industries served by
Brown & Root. The pulp and paper, energy, and chemicals industries significantly
contributed to the increased revenues, as well as a service contract with the
U.S. Department of Defense to provide technical and logistical support for
military operations in Bosnia. Brown & Root's operating income also increased 42
percent to $22.3 million for the 1996 first quarter.
Commenting on the first quarter results, Dick Cheney, Halliburton Company's
chairman of the board and chief executive officer, stated, "Both of Halliburton
Company's business segments are continuing to progress in achieving strategic
and financial objectives."
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"Halliburton Energy Services is benefitting from internal operating
efficiencies gained in recent years and improved market conditions in both the
United States and international areas."
"Brown & Root is now benefitting from a growing firm order backlog,which
reached just over $5.0 billion at March 31, 1996, an increase of 23 percent from
a year ago. Much of the new backlog is represented by large multi-year projects
in international areas, and the projects are now generating incremental
revenues. We expect that these projects will lead to increased operating income
as the projects mature."
"The strong Halliburton Company first quarter start gives us
optimism for significant 1996 full-year progress."
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.
# # #
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HALLIBURTON COMPANY
Three Months Ended
March 31
----------- -----------
1996 1995
----------- -----------
Millions of dollars
except per share data
Revenues
Energy services $ 663.3 $ 569.0
Engineering and
construction services 998.1 704.9
----------- -----------
Total revenues $ 1,661.4 $ 1,273.9
=========== ===========
Operating income
Energy services $ 67.3 $ 52.3
Engineering and
construction services 22.3 15.7
General corporate (8.8) (6.3)
----------- -----------
Total operating income 80.8 61.7
Interest expense (4.9) (12.8)
Interest income 3.0 8.5
Foreign currency gains 1.0 4.7
Other nonoperating income, net 0.5 0.1
----------- -----------
Income from continuing operations before
income taxes and minority interest 80.4 62.2
Provision for income taxes (29.0) (23.8)
Minority interest 0.1 (0.1)
----------- -----------
Income from continuing operations 51.5 38.3
Income from discontinued operations,
net of income taxes - 0.8
----------- -----------
Net income $ 51.5 $ 39.1
=========== ===========
Income per share:*
Continuing operations $ 0.45 $ 0.33
Discontinued operations - 0.01
Net income 0.45 0.34
Average common and common share
equivalents outstanding 115.4 114.3
<FN>
* Per share amounts are based upon average number of common and common share
equivalents outstanding.
</FN>
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