UPDATE 2-Baker Hughes Q4 profit lags Street view

Tue Jan 24, 2012 6:54am EST

* Q4 adj EPS $1.22 vs est $1.32

* Q4 rev up 22 pct

Jan 24 (Reuters) - Oilfield services provider Baker Hughes Inc missed analysts' estimate as quarterly profit dropped 6 percent, hurt by a rise in costs and issues at its pressure pumping business.

The company said its pressure pumping business, which helps in the completion of new wells and in remedial work on existing wells, was hit by availability, cost and transportation of materials.

Baker Hughes, which is ranked third after Schlumberger and Halliburton Co, expects growth in the Latin America, Middle East, and deepwater markets to continue this year.

Fourth-quarter net profit fell to $314 million, or 72 cents a share, from $335 million, or 77 cents per share, a year ago.

Excluding special items, the company posted a profit of $1.22 a share.

Revenue rose 22 percent to $5.39 billion.

Analysts had expected earnings of $1.32 a share on revenue of $5.47 billion, according to Thomson Reuters I/B/E/S.

Total costs rose 26 percent in the quarter.

Earlier this month, Schlumberger and Halliburton posted better-than-expected fourth-quarter profits.

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