Baker Hughes Q2 Profit Falls - Quick Facts

(RTTNews) - Oilfield services provider Baker Hughes Inc. (BHI) reported a sharp drop in second-quarter 2013 GAAP net income to $240 million or $0.54 per share, from $439 million, or $1.00 per share, a year before. On average, 32 analysts polled by Thomson Reuters expected earnings per share of $0.65 for the quarter. Analysts' estimates typically exclude one-time items. The recent period's results includes after-tax charges of $20 million for bad debt provisions in Latin America and $7 million for an inventory charge related to certain proppants used in pressure pumping in North America, according to the company.

Quarterly revenue was $5.49 billion, up 3%, compared with $5.33 billion for the second quarter of 2012. Analysts estimated revenues of $5.26 billion for the quarter.

Commenting on the results, Baker Hughes' Chairman & Chief Executive said, "Activity levels continued to rise across the Eastern Hemisphere based on strong demand in deepwater markets, particularly in Europe and Africa, as well as seasonal improvements in Russia. However, our gains in the East were more than offset by a sharp decline in Latin America resulting from reduced activity and demobilization costs in Brazil and Mexico. In response to these conditions, during the second quarter we began taking actions to reduce costs in our Latin America operations. This process should be substantially complete in the third quarter leading to increased profitability in the second half of the year."