Baker Hughes first quarter results slip

Source: Baker Hughes

Baker Hughes Incorporated (BHI) today announced that net income for the first quarter 2010 was $129 million or $0.41 per diluted share compared to $195 million or $0.63 per diluted share for the first quarter 2009 and $84 million or $0.27 per diluted share for the fourth quarter 2009. 

As previously reported, net income for the first quarter 2009 and the fourth quarter 2009 included expenses of $83 million before tax ($0.18 per diluted share) and $74 million before tax ($0.16 per diluted share), 
respectively, associated with reorganization, severance and acquisition costs, and increases to our allowance for doubtful accounts. 

Revenue for the first quarter 2010 was $2.54 billion, down 5% compared to $2.67 billion for the first quarter 2009 and up 5% compared to $2.43 billion for the fourth quarter 2009. 

Chad C. Deaton, Baker Hughes chairman, president and chief executive officer, said "I am pleased with our first quarter results. North America operations performed well in an improving market delivering strong incremental margins driven by efficiency and without the benefit of significant price improvement. The shift to more horizontal drilling requiring multi-stage fracing fits well with our new capabilities. 

"Our international business was impacted by pricing deterioration in the quarter as a result of last year's tender awards. We expect that international spending will continue a multi-year expansion as the industry works to develop reservoirs around the world to satisfy the energy demands of the global economy. As customer spending increases we expect profit margins to improve as the year progresses. 

"Our geographic and products and technology organizations, implemented one year ago, are fully functioning. Last week we closed on the BJ Services merger and we have begun to fold their operations into the geographic organization - first in the international markets and later, following the government-required divestiture of certain assets, into our US operations." 

During the first quarter 2010, debt increased $220 million to $2.02 billion and cash increased $19 million to $1.61 billion as compared to the fourth quarter 2009. Capital expenditures were $246 million, depreciation and amortization expense was $189 million and dividend payments were $47 million in the first quarter 2010.

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