Baker Hughes Issues Outlook for the Fourth Quarter of 2012

Tue Dec 18, 2012 7:00am EST

* Reuters is not responsible for the content in this press release.

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/pdfnews/pdfnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20121218:nPnDA31371


HOUSTON,  Dec. 18, 2012  /PRNewswire/ -- Baker Hughes Incorporated (NYSE: BHI)
provides the following update to  North America  and International operations
for the fourth quarter of 2012:

North America  revenue and profit margins are expected to be lower than previous
expectations due to weaker than anticipated onshore activity and further price
erosion within Pressure Pumping operations. As a result,  North America 
operating profit before tax margin1  is now expected to be between 8.5% and 9.5%
for the fourth quarter of 2012, as compared to 11.7% in the third quarter of
2012.

International operations are being adversely impacted by several factors,
including weaker than anticipated rig count activity in  Brazil  and  Colombia,
activity delays in the North Sea, and continued operational delays in  Iraq.
Despite these factors, International operating profit before tax margin1  is
expected to be similar to the 12.0% reported in the third quarter of 2012
(excluding the impact of bad debts recognized in  Latin America  and  Europe).  

Baker Hughes will discuss the final results of the fourth quarter of 2012 in
detail during its previously announced fourth quarter earnings conference call,
which is scheduled to begin at  8:00 a.m. EST  on  Wednesday, January 23, 2013. 




1Operating profit before tax is a non-GAAP measure defined as profit before tax
("income before income taxes") less certain identified costs. Operating profit
before tax margin is a non-GAAP measure defined as operating profit before tax
divided by revenue. Management uses each of these measures because it believes
they are widely accepted financial indicators used by investors and analysts to
analyze and compare companies on the basis of operating performance and that
these measurements may be used by investors to make informed investment
decisions.  The results for the third quarter of 2012 exclude the impact of a 
$43 million  before-tax charge related to internally developed software and
other information technology assets, and a  $20 million  before-tax charge
associated with the closure of a chemical manufacturing facility in the United
Kingdom.  Currently, there are no adjustments included in the outlook for the
fourth quarter of 2012.

Baker Hughes is a leading supplier of oilfield services, products, technology
and systems to the worldwide oil and natural gas industry. The company's
58,000-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' century-long history, visit: 
www.bakerhughes.com.

This news release (and oral statements made regarding the subjects of this
release, including on the conference call referenced herein) contain
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, (each a "forward-looking statement").  The words "anticipate,"
"believe," "ensure," "expect," "if," "intend," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could," "should,"
"potential," "would," "may," "probable," "likely," and similar expressions, and
the negative thereof, are intended to identify forward-looking statements. There
are many risks and uncertainties that could cause actual results to differ
materially from our forward-looking statements. These forward-looking statements
also are affected by the risk factors described in the company's Annual Report
on Form 10-K for the year ended December 31, 2011, and those set forth from
time-to-time in other filings with the Securities and Exchange Commission
("SEC"). The documents are available through the company's website at: 
http://www.bakerhughes.com/investor or through the SEC's Electronic Data
Gathering and Analysis Retrieval System (EDGAR) at:  http://www.sec.gov. We have
yet to complete our review and compilation of our financial information for the
fourth quarter of 2012, and accordingly, expected results are subject to change.
We undertake no obligation to publicly update or revise any forward-looking
statement.

CONTACTS:

 Media Relations:     Teresa Wong, +1.713.439.8110,  teresa.wong@bakerhughes.com      
                      Pam Easton, +1.281.209.7050,  pamela.easton@bakerhughes.com     
 Investor Relations:  Trey Clark, +1.713.439.8039,  trey.clark@bakerhughes.com        
                      Eric Holcomb, +1.713.439.8822,  eric.s.holcomb@bakerhughes.com  


SOURCE  Baker Hughes
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.