FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
January 22, 1997 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON FOURTH QUARTER UP 37 PERCENT
DALLAS, Texas -- Halliburton Company (NYSE-HAL) today reported 1996 fourth
quarter net income of $107.6 million ($.85 per share), an increase of 37 percent
compared to 1995 fourth quarter results. Total 1996 fourth quarter revenues were
$2.0 billion, 25 percent higher than the year earlier quarter. Both of
Halliburton's business segments contributed to the increased revenues and
operating income.
For the year of 1996, Halliburton's net income was $300.4 million ($2.38
per share) compared to 1995 earnings of $183.7 million ($1.47 per share). The
acquisition of Landmark Graphics Corporation diluted Halliburton's earnings by
$.21 per share prior to its acquisition and by $.01 per share for the 1996
fourth quarter. Halliburton's revenues for the full year of 1996 totalled $7.4
billion, an increase of 26 percent compared to 1995 revenues.
Halliburton's financial results now include Landmark Graphics Corporation
which was acquired on October 4, 1996. The acquisition is accounted for using
the "pooling of interests" method of accounting for business combinations and,
as a result, financial results for 1996 and prior years have been restated.
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Also,financial statements have been restated to reflect the realignment of Brown
& Root Energy Services' operations which are now associated with the Energy
Services business segment.
The Energy Services business segment's 1996 fourth quarter revenues were
$1.3 billion, an increase of 33 percent compared to the 1995 fourth quarter.
Strong growth was experienced by three of the segment's business units ---
Halliburton Energy Services, Brown & Root Energy Services and Landmark. A fourth
unit, Halliburton Energy Development, was formed during 1996 to create new
business opportunities for development, production and operations of oil and gas
fields by integrating the broad range of Halliburton's capabilities, and it will
begin making a financial contribution in 1997.
Energy Services' operating income increased 40 percent to $159.7 million in
the 1996 fourth quarter compared to the year ago quarter. The strong profit
improvement is largely attributable to the segment's higher revenue base,
particularly in the North America, Latin America and Europe and Africa
geographic regions.
The Engineering and Construction Services business segment's 1996 fourth
quarter revenues were $713.8 million, an increase of 14 percent compared to the
same 1995 quarter. The segment's operating income for the most recent quarter
was $21.6 million, up 12 percent from the year earlier quarter. The revenues and
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operating income increases are largely attributable to improved performance by
the manufacturing, industrial, petroleum and chemical business units.
Dick Cheney, Halliburton Company's chairman of the board and chief
executive officer, said, "1996 was a successful year in building Halliburton's
earnings and shareholder value. The expected positive impact of many of the
initiatives implemented during the year will be recognized in future years.
"We are continuing to focus on growing Halliburton's business base through
the introduction of new technologies, developing new lines of business and
making strategic acquisitions.
"In addition to growth, we continue to place great emphasis on improving
operating efficiency and lowering costs. During 1996 we initiated programs to
streamline portions of the business, realign business units to better meet
customer needs, and optimize utilization of common processes and support
services company-wide.
"I am confident that the programs and initiatives will continue to
strengthen Halliburton's position in meeting the needs of the market place and
enhance financial performance in 1997 and future years."
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
CONSOLIDATED STATEMENTS OF INCOME**
(UNAUDITED)
Quarter Ended Twelve Months Ended
December 31 December 31
---------------------- ----------------------
1996 1995 1996 1995
---------- ---------- ---------- ----------
Millions of dollars except per share data
Revenues
Energy services $ 1,275.9 $ 961.5 $ 4,286.3 $ 3,604.0
Engineering and
construction services 713.8 626.1 3,098.8 2,278.9
---------- ---------- ---------- ----------
Total revenues $ 1,989.7 $ 1,587.6 $ 7,385.1 $ 5,882.9
========== ========== ========== ==========
Operating income
Energy services $ 159.7 $ 113.8 $ 484.4 $ 398.2
Engineering and
construction services 21.6 19.3 53.7 44.6
Special charges - - (85.8) (8.4)
General corporate (8.0) (11.6) (34.4) (33.5)
---------- ---------- ---------- ----------
Total operating income 173.3 121.5 417.9 400.9
Interest expense (6.4) (6.2) (24.1) (47.1)
Interest income 2.3 4.5 14.2 32.0
Foreign currency gains (losses) (1.2) 0.9 (3.9) 1.4
Other nonoperating, net (0.6) (0.0) (0.4) (0.3)
---------- ---------- ---------- ----------
Income from continuing
operations before income taxes 167.4 120.7 403.7 386.9
Provision
for income taxes (59.8) (42.4) (103.3) (137.7)
---------- ---------- ---------- ----------
Income from continuing
operations 107.6 78.3 300.4 249.2
Loss from discontinued
operations, net of
income taxes - - - (65.5)
---------- ---------- ---------- ----------
Net income $ 107.6 $ 78.3 $ 300.4 $ 183.7
========== ========== ========== ==========
Income (loss) per share:*
Continuing operations $ 0.85 $ 0.63 $ 2.38 $ 2.00
Discontinued operations - - - (0.53)
Net income 0.85 0.63 2.38 1.47
Average common and common
share equivalents
outstanding 126.5 125.1 126.1 124.7
<FN>
* Per share amounts are based upon average number of common and
common share equivalents outstanding.
** Restated for Landmark Graphics Corporation pooling of interests and
realignment of business segments.
</FN>
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Halliburton Company
Supplementary Financial Information *
(In millions)
1996
------------------------------------------------
Three months ended Year
-------------------------------------- ended
March 31 June 30 Sept. 30 Dec. 31 Dec. 31
-------- -------- -------- -------- --------
Revenues
HES $ 663.2 $ 721.5 $ 779.0 $ 897.5 $3,061.2
Landmark 43.3 54.0 46.5 67.5 211.3
BRES 165.0 249.1 288.8 310.9 1,013.8
------- -------- -------- -------- --------
Energy Services 871.5 1,024.6 1,114.3 1,275.9 4,286.3
Engineering and
Construction Svcs 833.2 806.2 745.6 713.8 3,098.8
-------- -------- -------- -------- --------
Total $1,704.7 $1,830.8 $1,859.9 $1,989.7 $7,385.1
======== ======== ======== ======== ========
Operating income
HES $ 67.3 $ 92.1 $ 101.9 $ 133.6 $ 394.9
Landmark 3.0 5.6 0.8 10.3 19.7
BRES 8.6 30.6 14.8 15.8 69.8
-------- -------- -------- -------- --------
Energy Services 78.9 128.3 117.5 159.7 484.4
Engineering and
Construction Svcs 13.7 (4.2) 22.6 21.6 53.7
Special charges (12.2) - (73.6) - (85.8)
General corporate (8.8) (8.4) (9.2) (8.0) (34.4)
-------- -------- -------- -------- --------
Total $ 71.6 $ 115.7 $ 57.3 $ 173.3 $ 417.9
======== ======== ======== ======== ========
December 31, 1995
------------------
Three Twelve
months months
-------- --------
Revenues
HES $ 741.9 $2,623.4
Landmark 50.2 184.2
BRES 169.4 796.4
-------- --------
Energy Services 961.5 3,604.0
Engineering and
Construction Services 626.1 2,278.9
-------- --------
Total $1,587.6 $5,882.9
======== ========
Operating income
HES $ 102.1 $ 313.7
Landmark 8.1 26.1
BRES 3.6 58.4
-------- --------
Energy Services 113.8 398.2
Engineering and
Construction Services 19.3 44.6
Special charges - (8.4)
General corporate (11.6) (33.5)
-------- --------
Total $ 121.5 $ 400.9
======== ========
<FN>
* Restated for Landmark Graphics Corporation and realignment of
business segments.
</FN>
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