FOR IMMEDIATE RELEASE Contact-Guy T. Marcus
April 23, 1997 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON FIRST QUARTER NET INCOME UP 82 PERCENT
DALLAS, Texas -- Halliburton Company (NYSE-HAL) announces 1997 first
quarter net income of $83.0 million ($.65 per share), an increase of 82 percent
compared to 1996 first quarter net income of $45.5 million ($.36 per share).
Halliburton Company's 1997 first quarter consolidated revenues were $1,897.5
million, up 11 percent from the year earlier period. Profitability increased
because of substantial earnings improvement at both the Energy and the
Engineering and Construction business segments.
The Energy Group business segment's 1997 first quarter revenues increased
29 percent to $1,120.3 million compared to the 1996 quarter, while 1997 first
quarter operating income increased 49 percent to $117.2 million compared to the
year earlier quarter. Strong growth was experienced by both U.S. and
international business operations where revenue increases of 31 percent and 27
percent, respectively, were achieved as compared to a year earlier.
The Engineering and Construction Group's 1997 first quarter revenues
totalled $777.2 million, a decline of 7 percent compared to the 1996 quarter.
The winding down of a logistical support contract for U.S. Army troops in Bosnia
resulted in revenue reduction of more than $150 million in the 1997 first
quarter compared to a year ago. However, operating income more than doubled to
$29.4 million in the 1997 first quarter compared to last year's first quarter.
The business segment is now benefitting from efficiencies created by a
restructuring program initiated during 1996, as well as giving greater emphasis
to fixed-price contracts with greater profit margin potential.
Dick Cheney, Halliburton Company's chairman of the board, president and
chief executive officer, commented, "The substantial financial and operating
improvement at both of the Company's business segments is encouraging. The
Energy Group has been aided by a combination of stronger general market
conditions as well as the successful introduction of new technologies, continued
emphasis on programs designed to enhance operating efficiencies, and the
implementation of alliances and energy development projects requiring a wide
range of services from the Company for its clients around the world. Since
mid-year 1996 Brown & Root's employees have made notable progress implementing a
restructuring program and strategic initiatives which are now beginning to
visibly benefit our core Engineering and Construction business.
"Progress on implementing key strategic initiatives and cost reduction
programs during the 1997 first quarter gives momentum that should benefit the
Company in future periods."
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.
# # #
HALLIBURTON COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended
March 31
---------- -----------
1997 1996 *
---------- ----------
Millions of dollars except per share data
Revenues
Energy Group $ 1,120.3 $ 871.5
Engineering and
Construction Group 777.2 833.2
---------- ----------
Total revenues $ 1,897.5 $ 1,704.7
========== ==========
Operating income
Energy Group $ 117.2 $ 78.9
Engineering and
Construction Group 29.4 13.7
Special charges - (12.2)
General corporate (7.9) (8.8)
---------- ----------
Total operating income 138.7 71.6
Interest expense (6.1) (5.0)
Interest income 4.4 3.8
Foreign currency gains 1.0 1.0
Other nonoperating, net 0.6 0.6
---------- ----------
Income before income
taxes and minority
interests 138.6 72.0
Provision for
income taxes (52.7) (26.6)
Minority interest in net
(income) loss of
subsidiaries (2.9) 0.1
---------- ----------
Net income $ 83.0 $ 45.5
========== ==========
Income per share:** $ 0.65 $ 0.36
Average common and common
share equivalents
outstanding 127.7 125.4
<FN>
* Restated for Landmark Graphics Corporation pooling of interests and
realignment of business segments.
** Per share amounts are based upon average number of common and common share
equivalents outstanding.
</FN>