FOR IMMEDIATE RELEASE Contact-Guy T. Marcus
July 23, 1997 VP-Inv.Rel.
(214) 978-2691
HALLIBURTON 1997 SECOND QUARTER NET INCOME UP 42 PERCENT
DALLAS, Texas -- Halliburton Company (NYSE:HAL) announces 1997 second
quarter net income of $101.9 million, an increase of 42 percent compared to 1996
second quarter net income of $71.8 million. After giving effect to Halliburton s
recent 2-for-1 common stock split, Halliburton earned $.40 per share in the 1997
second quarter compared to $.29 per share in the year earlier period.
Consolidated revenues for the company were $2,231.1 million in the 1997 second
quarter, an increase of 22 percent from the year ago quarter. Halliburton s
increased earnings resulted from substantial profit improvement by both the
Energy and the Engineering and Construction business segments of the company.
The Energy Group business segment's revenues increased 42 percent to
$1,456.4 million compared to the year earlier quarter. Strong business unit
revenue gains were achieved by Halliburton Energy Services, Landmark Graphics
Corporation and Brown & Root Energy Services. Brown & Root Energy Services
benefited from inclusion of newly acquired OGC International plc in the 1997
second quarter. Growth was experienced worldwide with U.S. revenues increasing
by 36 percent and international revenues by 45 percent compared to a year ago.
-more-
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Halliburton Company Page 2
Operating income for the Energy Group business segment in the 1997 second
quarter increased 25 percent to $160.1 million compared to the second quarter of
1996. Last year's second quarter benefited from recognition of $32 million of
gain-sharing award relating to the successful completion of the BP Andrew
project substantially ahead of schedule and under budget. Excluding the
gain-sharing award from last year's results, 1997 second quarter operating
income increased by 66 percent.
The Engineering and Construction Group business segment's operating margins
improved to 3.9 percent and operating income reached $30.0 million for the 1997
second quarter compared to a loss of $4.2 million in the 1996 second quarter.
The increased margins and operating income reflect benefits now accruing from
restructuring the business in late 1996 and refocusing new backlog acquisition
efforts on projects with higher profit margin potential. Revenues were $774.7
million in the 1997 second quarter, a decline of four percent compared to the
1996 second quarter due primarily to a reduction of about $100 million of work
for the U.S. Department of Defense in Bosnia.
Dick Cheney, chairman of the board and chief executive officer, said,
"Halliburton Company's engineering and construction backlog reached $7.0 billion
at June 30, an increase of 44 percent since the beginning of 1997. New strategic
acquisitions completed over the past year have strengthened the company's
competitive position, and we look forward to completing the acquisitions of
Kinhill Holdings Limited and NUMAR Corporation and adding NUMAR'S proprietary
MRIL (Magnetic Resonance Imaging Logging) technology to our array of services
offered to the petroleum industry. These are some of the factors that give me
optimism about the company's future growth prospects."
-more-
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Halliburton Company Page 3
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 Six Months
June 30 June 30
---------- ---------- ---------- ----------
1997 1996 * 1997 1996 *
---------- ---------- ---------- ----------
Millions of dollars except per share data
Revenues
Energy Group $ 1,456.4 $ 1,024.6 $ 2,576.7 $ 1,896.1
Engineering and
Construction Group 774.7 806.2 1,551.9 1,639.4
---------- ---------- ---------- ----------
Total revenues $ 2,231.1 $ 1,830.8 $ 4,128.6 $ 3,535.5
========== ========== ========== ==========
Operating income
Energy Group $ 160.1 $ 128.3 $ 277.3 $ 207.2
Engineering and
Construction Group 30.0 (4.2) 59.4 9.5
Special charges - - - (12.2)
General corporate (8.1) (8.4) (16.0) (17.2)
---------- ---------- ---------- ----------
Total operating
income 182.0 115.7 320.7 187.3
Interest expense (9.7) (5.8) (15.8) (10.8)
Interest income 2.1 3.3 6.5 7.1
Foreign currency
gains (losses) (0.4) (3.2) 0.6 (2.2)
Other nonoperating,
net (0.1) (0.5) 0.5 0.1
---------- ---------- ---------- ----------
Income before
income taxes and
minority interests 173.9 109.5 312.5 181.5
Provision for
income taxes (68.5) (37.7) (121.2) (64.3)
Minority interest
in net (income) loss
of subsidiaries (3.5) - (6.4) 0.1
---------- ---------- ---------- ----------
Net income $ 101.9 $ 71.8 $ 184.9 $ 117.3
========== ========== ========== ==========
Income per share ** $ 0.40 $ 0.29 $ 0.72 $ 0.47
Average common
and common share
equivalents
outstanding 256.0 251.3 255.7 251.1
<FN>
* Restated for Landmark Graphics Corporation pooling of
interests and business realignment.
** Per share amounts are based upon average number of common
and common share equivalents outstanding adjusted for the
two-for-one common stock split declared on June 9, 1997,
and effected in the form of a stock dividend on July 21,
1997, to shareholders of record at June 26, 1997.
</FN>
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