HOUSTON, Oct. 6 /PRNewswire/ -- Baker Hughes Incorporated today is providing revised information for regional revenue and operating profit before tax for its North America and Latin America regions for the fourteen quarters from the quarter ended March 31, 2005 through the quarter ended June 30, 2008 and is identified on the attached schedules as "(revised)". The original data was released on July 17, 2008.
In this revised disclosure, revenue and operating profit before tax for Trinidad, which is supported by our U.S. Gulf Coast operations, has been reclassified from Latin America to North America. There are no changes to the total revenue or operating profit before tax as previously disclosed. The revised information is also posted on our website at http://www.bakerhughes.com/investor.
Revenue and Operating Profit Before Tax(1) by Region
For the 12 Months Ended December 31, 2005
12 months
3 months ended ended
3/31/2005 6/30/2005 9/30/2005 12/31/2005 12/31/2005
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Segment Revenue
Drilling and
Evaluation $839.3 $893.7 $915.0 $1,046.2 $3,694.2
Completion and
Production 803.2 873.8 869.8 943.2 3,490.0
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Oilfield
Operations 1,642.5 1,767.5 1,784.8 1,989.4 7,184.2
==========================================================================
Geographic Revenue
North America
(revised) 730.6 769.9 779.1 861.6 3,141.2
Latin America
(revised) 141.5 157.5 161.1 178.1 638.2
Europe, Africa,
Russia, and the
Caspian 463.6 496.3 499.2 547.5 2,006.6
Middle East, Asia
Pacific 306.8 343.8 345.4 402.2 1,398.2
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Oilfield
Operations 1,642.5 1,767.5 1,784.8 1,989.4 7,184.2
Corporate and Other
Corporate and
other revenue 0.4 0.9 - - 1.3
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Total revenues $1,642.9 $1,768.4 $1,784.8 $1,989.4 $7,185.5
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Segment Operating Profit
Drilling and
Evaluation $153.3 $174.2 $190.0 $232.1 $749.6
Completion and
Production(2) 146.3 171.3 170.0 178.4 666.0
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Oilfield
Operations 299.6 345.5 360.0 410.5 1,415.6
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Geographic Operating Profit
North America
(revised) 149.8 160.4 169.3 197.1 676.6
Latin America
(revised) 31.0 37.2 30.3 35.5 134.0
Europe, Africa,
Russia, and the
Caspian 73.3 86.6 92.2 97.9 350.0
Middle East, Asia
Pacific 45.5 61.3 68.2 80.0 255.0
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Oilfield
Operations 299.6 345.5 360.0 410.5 1,415.6
WesternGeco 19.3 18.5 25.5 33.4 96.7
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Total Oilfield 318.9 364.0 385.5 443.9 1,512.3
Corporate and Other Operating Profit
Interest expense (18.6) (16.7) (18.8) (18.2) (72.3)
Interest and
dividend Income 1.9 3.3 4.9 7.9 18.0
Corporate and
other (32.0) (45.2) (49.2) (52.4) (178.8)
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Corporate, net
interest and Other (48.7) (58.6) (63.1) (62.7) (233.1)
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Total Operating
Profit(1) $270.2 $305.4 $322.4 $381.2 $1,279.2
==========================================================================
See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.
Revenue and Operating Profit Before Tax(1) by Region
For the 12 Months Ended December 31, 2006
12 months
3 months ended ended
3/31/2006 6/30/2006(1) 9/30/2006 12/31/2006 12/31/2006(1)
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Segment Revenue
Drilling and
Evaluation $1,084.5 $1,118.4 $1,204.1 $1,253.7 $4,660.7
Completion and
Production 977.5 1,084.9 1,105.3 1,199.0 4,366.7
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Oilfield
Operations 2,062.0 2,203.3 2,309.4 2,452.7 9,027.4
==========================================================================
Geographic Revenue
North America
(revised) 959.4 996.0 1,059.1 1,061.7 4,076.2
Latin America
(revised) 168.9 181.0 189.6 211.5 751.0
Europe, Africa,
Russia, and
Caspian 557.1 605.4 637.9 689.2 2,489.6
Middle East, Asia
Pacific 376.6 420.9 422.8 490.3 1,710.6
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Oilfield
Operations 2,062.0 2,203.3 2,309.4 2,452.7 9,027.4
Corporate and Other
Corporate and other
Revenue - - - - -
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Total revenues $2,062.0 $2,203.3 $2,309.4 $2,452.7 $9,027.4
==========================================================================
Segment Operating Profit
Drilling and
Evaluation(4) $277.3 $288.0 $320.7 $355.8 $1,241.8
Completion and
Production 204.8 246.3 241.1 249.7 941.9
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Oilfield
Operations 482.1 534.3 561.8 605.5 2,183.7
==========================================================================
Geographic Operating Profit
North America
(revised) 253.3 265.8 284.5 290.9 1,094.5
Latin America
(revised) 34.7 37.2 37.9 44.9 154.7
Europe, Africa,
Russia, and the
Caspian 116.4 129.3 142.5 148.9 537.1
Middle East, Asia
Pacific 77.7 102.0 96.9 120.8 397.4
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Oilfield
Operations 482.1 534.3 561.8 605.5 2,183.7
WesternGeco(3) 47.9 10.8 - - 58.7
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Total Oilfield 530.0 545.1 561.8 605.5 2,242.4
Corporate and Other Operating Profit
Interest expense (16.5) (17.0) (18.1) (17.3) (68.9)
Interest and
dividend income 7.3 24.2 22.6 13.4 67.5
Charge for
investigation
resolution(5) - - - (46.1) (46.1)
Corporate and
other (41.4) (45.3) (49.0) (65.9) (201.6)
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Corporate, net
interest and
other (50.6) (38.1) (44.5) (115.9) (249.1)
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Total Operating
Profit(1) $479.4 $507.0 $517.3 $489.6 $1,993.3
==========================================================================
See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.
Revenue and Operating Profit Before Tax(1) by Region
For the 12 Months Ended December 31, 2007
12 months
3 months ended ended
3/31/2007 6/30/2007 9/30/2007 12/31/2007 12/31/2007
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Segment Revenue
Drilling and
Evaluation $1,288.5 $1,278.7 $1,356.0 $1,370.0 $5,293.2
Completion and
Production 1,184.2 1,258.7 1,321.8 1,370.3 5,135.0
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Oilfield
Operations 2,472.7 2,537.4 2,677.8 2,740.3 10,428.2
==========================================================================
Geographic Revenue
North America
(revised) 1,095.5 1,071.4 1,140.7 1,132.8 4,440.4
Latin America
(revised) 206.3 216.5 240.3 240.2 903.3
Europe, Africa,
Russia, and the
Caspian 709.2 765.0 799.1 803.0 3,076.3
Middle East, Asia
Pacific 461.7 484.5 497.7 564.3 2,008.2
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Oilfield
Operations 2,472.7 2,537.4 2,677.8 2,740.3 10,428.2
Corporate and Other
Corporate and other
revenue 0.1 0.1 (0.2) - -
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Total revenues $2,472.8 $2,537.5 $2,677.6 $2,740.3 $10,428.2
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Segment Operating Profit
Drilling and
Evaluation(6) $365.1 $326.6 $357.1 $347.4 $1,396.2
Completion and
Production 245.0 265.2 287.2 314.8 1,112.2
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Oilfield
Operations 610.1 591.8 644.3 662.2 2,508.4
==========================================================================
Geographic Operating Profit
North America
(revised) 309.9 267.7 310.1 289.9 1,177.6
Latin America
(revised) 36.1 36.1 48.9 53.9 175.0
Europe, Africa,
Russia, and the
Caspian 157.2 179.3 170.6 178.3 685.4
Middle East, Asia
Pacific 106.9 108.7 114.7 140.1 470.4
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Oilfield
Operations 610.1 591.8 644.3 662.2 2,508.4
Corporate and Other Operating Profit
Interest expense (16.8) (16.2) (16.7) (16.4) (66.1)
Interest and
dividend income 11.5 10.7 10.5 11.1 43.8
Corporate and other (49.7) (54.5) (61.7) (63.5) (229.4)
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Corporate, net
interest and other (55.0) (60.0) (67.9) (68.8) (251.7)
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Total Operating
Profit(1) $555.1 $531.8 $576.4 $593.4 $2,256.7
==========================================================================
See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.
Revenue and Operating Profit Before Tax(1) by Region
For the 6 Months ended June 30, 2008
3 months ended
3/31/2008 6/30/2008
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Segment Revenue
Drilling and Evaluation $1,390.9 $1,527.1
Completion and Production 1,279.5 1,470.4
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Oilfield Operations 2,670.4 2,997.5
=================================================================
Geographic Revenue
North America (revised) 1,177.0 1,278.4
Latin America (revised) 234.6 266.5
Europe, Africa, Russia, and the Caspian 762.4 905.4
Middle East, Asia Pacific 496.4 547.2
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Oilfield Operations 2,670.4 2,997.5
Corporate and Other
Corporate and other revenue - -
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Total revenues $2,670.4 $2,997.5
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Segment Operating Profit
Drilling and Evaluation $349.5 $366.9
Completion and Production 263.1 322.6
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Oilfield Operations 612.6 689.5
=================================================================
Geographic Operating
Profit
North America (revised) 316.3 325.8
Latin America (revised) 45.4 43.8
Europe, Africa, Russia, and the Caspian 149.3 212.4
Middle East, Asia Pacific 101.6 107.5
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Oilfield Operations 612.6 689.5
Corporate and Other Operating Profit
Litigation settlement(8) - (62.0)
Gain on sale of product line(7) 28.2 -
Interest expense (15.7) (17.1)
Interest and dividend income 8.0 4.2
Corporate and other (63.9) (63.7)
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Corporate, net interest and other (43.4) (138.6)
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Total Operating Profit(1) $569.2 $550.9
=================================================================
See "Notes to Revenue and Operating Profit Before Tax by Region" in this news release.
Notes to Revenue and Operating Profit Before Tax by Region
1 - Operating profit before tax is a non-GAAP measures comprised of income from continuing operations excluding the impact of certain identified non-operational items. The company believes that operating profit is useful to investors because it is a consistent measure of the underlying results of the company's business. Furthermore, management uses operating profit internally as a measure of the performance of the company's operations. Income from continuing operations before tax is reconciled to operating profit before tax in the table below. Reconciliation of GAAP and operating profits for historical periods can be found on the company's website at http://www.bakerhughes.com/investor.
Reconciliation of GAAP and Operating Profit Before Tax
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UNAUDITED for the three for the twelve
(In millions except earnings months ended months ended
per share) June 30, 2006 December 31, 2006
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Income from continuing operations
(GAAP) $2,250.5 $3,736.8
Less non-operational items:
Gain on sale of interest
in WesternGeco (1,743.5) (1,743.5)
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Operating results, excluding the
impact of Non-operational items $507.0 $1,993.3
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The non-operational item in the second quarter of 2006 and the year ended December 31, 2006 related to the pre-tax gain of $1,743.5 million ($1,035.2 million after tax) from the sale of our 30% interest in WesternGeco, our seismic joint venture with Schlumberger, to Schlumberger on April 28, 2006 for $2.4 billion in cash.
There were no non-operational items in any other period between Quarter 1 2005 and Quarter 2 2008.
2 - Quarter 4 2005 results for Completion and Production include a $5.1 million write-off of in-process research and development associated with the acquisition of the remaining interest in QuantX. The impact on the region operating profit was: North America: $2.1 million; Europe Africa Russia and the Caspian: $3.0 million.
3 - Our 30% minority interest in WesternGeco was sold to Schlumberger on April 28, 2006.
4 - Fourth quarter 2006 results were favorably impacted by a change in accounting procedures related to certain inventory of our Baker Atlas division. The pretax impact of this change was a $21.2 million reduction to cost of services and rentals. The full amount is reflected in Drilling and Evaluation operating profit. The impact on the region operating profit was: North America: $7.5 million; Latin America: $2.6 million; Europe Africa Russia and the Caspian: $6.4 million; Middle East, Asia Pacific: $4.7 million.
5 - Fourth quarter 2006 results included a financial charge of approximately $46 million before tax ($38.5 million after tax or approximately $0.12 per diluted share) associated with the resolution of the investigations by the Securities and Exchange Commission and Department of Justice into activities in Angola, Kazakhstan and Nigeria.
6 - 2007 results were favorably impacted by an increase in the depreciable lives of certain assets of our Baker Atlas division. The pretax impact of this change was approximately $6.0 million reduction to cost of services and rentals per quarter.
7 - Profit before tax includes a gain of $28.2 million (approximately $18.4 million after tax or $0.06 per diluted share) for the sale of the Completion and Production segment's Surface Safety Systems ("SSS") product line in February 2008.
8 - Profit before tax includes a net charge of $62.0 million ($40.3 million after-tax or $0.13 per diluted share) relating to the settlement of litigation with ReedHycalog in May 2008.
Baker Hughes provides reservoir consulting, drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry.
Contact:
Gary R. Flaharty (713) 439-8039
H. Gene Shiels (713) 439-8822
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