– Record revenue of $5.9 billion for the quarter, up 8% year over year
– Adjusted profit before tax from operations of $778 million, up 15% sequentially
– Repurchase of $200 million of shares during the quarter
HOUSTON, July 17, 2014 /PRNewswire/ — Baker Hughes Incorporated (NYSE: BHI)
|
Q2 2014 |
Q2 2013 |
Q1 2014 |
|||||||||
| Revenue (millions) |
$ |
5,935 |
$ |
5,487 |
$ |
5,731 |
|||||
| Adjusted net income (non-GAAP, millions) |
404 |
240 |
369 |
||||||||
| Net income (GAAP, millions) |
353 |
240 |
328 |
||||||||
| Adjusted net income per diluted share (non-GAAP) |
0.92 |
0.54 |
0.84 |
||||||||
| Net income per diluted share (GAAP) |
0.80 |
0.54 |
0.74 |
||||||||
Adjusted net income for the second quarter of 2014 excludes $62 million in before-tax charges ($39 million after-tax) relating to litigation settlements for labor claims ($0.09 per diluted share) and $12 million before and after-tax costs ($0.03 per diluted share) associated with a foreign exchange loss related to the Venezuela currency devaluation. Please see Table 1 for a reconciliation of GAAP to non-GAAP financial measures for this quarter, as well as for the first quarter of 2014. There were no identified items requiring adjustment for the second quarter of 2013.
“This quarter we delivered record revenue and a 15% sequential increase in adjusted profit from operations,” said Martin Craighead, Baker Hughes Chairman and Chief Executive Officer. “Our results reflect improved execution and the rapid deployment of innovative new products and services around the world.
“In North America, newly introduced well construction and production technologies, such as the Kymeraâ„¢ hybrid drill bit and ProductionWaveâ„¢ production solution, are seeing unprecedented demand resulting in record revenue in our drilling services, drill bits, upstream chemicals, and artificial lift product lines. The rising sales of these products, along with an increase in onshore and offshore activity in the United States, more than offset the seasonal decline in our Canadian business.
“Internationally, we are leveraging new logging-while-drilling and wireline technologies to gain share within several critical offshore markets, including the United Kingdom, West Africa, and Australia. In the onshore markets, we are entering the early stages of global shale development. Products and services we recently introduced to improve the economics of North America shale production, are now finding new homes in the Middle East, Argentina, North Africa, Russia, and China.
“Around the world, the fundamentals of our business continue to strengthen. We anticipate increased activity for the remainder of the year in the form of higher international rig counts, and increased North American well counts. As a result, we project strong earnings growth as we fulfill the industry’s growing need for innovative new technologies.”
Share repurchases amounted to $200 million or 2.9 million shares for the second quarter of 2014, which results in a remaining amount of $1.25 billion under the current authorization.
Total dividend payments were $65 million in the second quarter of 2014. In May 2014, the Board of Directors approved a 13% increase in the quarterly cash dividend for the third quarter of 2014.
The effective tax rate on net income for the second quarter of 2014 increased to 37.2%, primarily attributed to the geographic mix of earnings.
Capital expenditures were $424 million in the second quarter of 2014, compared to the depreciation and amortization expense of $454 million.
Adjusted EBITDA (a non-GAAP measure) in the second quarter of 2014 was $1,159 million, an increase of $112 million compared to the first quarter of 2014 and an increase of $299 million compared to the second quarter of 2013.
For more information visit: http://www.bakerhughes.com/news-and-media/press-center/press-releases/2014-07-17-baker-hughes-announces-second-quarter-results
ABOUT BAKER HUGHES
Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The Company’s 59,000-plus employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information on Baker Hughes, visit: www.bakerhughes.com.
Investor Contacts:
Trey Clark, +1.713.439.8039, trey.clark@bakerhughes.com
Alondra Oteyza, +1.713.439.8822, alondra.oteyza@bakerhughes.com
Media Contact:
Melanie Kania, +1.713.439.8303, melanie.kania@bakerhughes.com
SOURCE Baker Hughes Incorporated
