Baker Hughes Inc · 8-K · For 4/24/96 · EX-99

Filed On 4/25/96   ·   SEC File 1-09397   ·   Accession Number 808362-96-8

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         1      7K 
 2: EX-99       Miscellaneous Exhibit                                  4±    19K 

EX-99   ·   Miscellaneous Exhibit

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                                               Exhibit A
Press Release                                                                   

Contact:  Scott B. Gill (713) 439-8666         Baker Hughes Incorporated        
                                         3900 Essex Lane, Suite 1200
Release:  Immediate                                        P. O. Box 4740       
                                       Houston, Texas 77210-4740
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BAKER HUGHES REPORTS EARNINGS PER SHARE UP 61% FOR SECOND QUARTER-NEW           
TECHNOLOGY AND KEY REGIONAL MARKETS CONTRIBUTE TO GROWTH                        

April 24, 1996.  Houston, Texas - Baker Hughes Incorporated (BHI-NYSE, PSE      
and Zurich) reported sharply increased earnings for the second quarter of       
its fiscal year.  Per share earnings increased 61% to $0.29, compared to        
$0.18 for the year-ago quarter.  Revenues of $744.8 million were 14% higher     
than that of $652.6 million in the same period last year and net income of      
$41.6 million was up 49% from $28.0 million in the same period last year.       

"Our continued strong results are being driven by our new technology and by     
our strong position in geographic markets with growing exploration and          
production programs," said James D. Woods, Chairman and Chief Executive         
Officer.                                                                        

Operational Highlights                                                          
----------------------                                                          

Baker Hughes oilfield revenues were $655.6 million for the quarter, the         
highest revenue quarter since the company's merger in 1987 and up 15% from      
the prior year period.  Profit before tax grew 30% to $86.1 million and         
margins increased by 150 basis points to 13.1%.  All five oilfield              
divisions contributed to the growth.                                            

Hughes Christensen continued the successful introduction of its new GT          
roller cone and Gold Series PDC drill bits, which significantly outperform      
competitive technology.  These new product revenues contributed 40% of the      
oilfield bit revenues for the quarter compared to only 6% in the year ago       
quarter.                                                                        

Baker Hughes INTEQ increased revenue by 19% compared to the prior year          
quarter.  The Navi-Drill Ultra Series drilling motors continued to gain         
share in the directional drilling segment.  The division's synthetic            
drilling fluid, the SYN-TEQ system, was used on the 100th customer well and     
the new EXCLUDER completion wellscreen has been successfully introduced for     
horizontal re-entry applications in the Gulf of Mexico.                         

Baker Oil Tools achieved a 13% revenue increase compared to the year-ago        
quarter.  The external casing packer line had its best quarter ever.  Baker     
Oil Tools continues to be the leader in completion tools, liner hangers and     
fishing services in major offshore markets.                                     

Baker Performance Chemicals had an improved quarter, which was highlighted      
by the award of the oilfield chemical contract for the Hibernia project off     
Eastern Canada.                                                                 

- 1 -     

The Centrilifit division, a leading supplier of electric submersible pump       
(ESP) systems, realized an 11% revenue increase compared to the year ago        
quarter led by strong international demand for ESP systems.                     

Baker Hughes Process Equipment Operations revenues were $79.2 million for       
the quarter, up 6% from the prior year period.  The outlook continues to be     
strong although several major projects have been deferred to later in the       
calendar year.                                                                  

Strong Geographic Markets                                                       
-------------------------                                                       

The premium markets of the North Sea, Gulf of Mexico, Venezuela and Nigeria     
continued to show strong growth amid a flat worldwide drilling market.  In      
these four key markets revenues increased 26% from the prior year and we        
expect these markets to continue to grow over the balance of 1996.              

Integrated Solutions                                                            
--------------------                                                            

Integrated Solutions (IS) revenues continued to post steady gains during        
the quarter.  Overall Integrated Solutions revenues were $97 million, up        
52% from the prior year period.  Nearly half of the IS revenue came from        
Europe, where Baker Hughes plays an important role in several major North       
Sea projects.                                                                   

Positive Outlook                                                                
----------------                                                                

"We remain optimistic for strong results over the balance of the year," Mr.     
Woods said.  "The healthy market is receptive to our new technology, our        
innovative systems and our integrated solutions capabilities."                  

"Our forecasts show continued growth in drilling activity in our key            
geographic markets.  We believe our customers in these areas will move          
forward with their E&P projects even if energy prices drop below recent         
high levels."                                                                   

Stockholder Rights Agreement and Quarterly Dividend                             
---------------------------------------------------                             

The Baker Hughes Board of Directors has exercised its option to redeem all      
of the rights (a "Right") to purchase one one-hundredth of a share of Baker     
Hughes Series One Junior Participating Preferred Stock for the redemption       
price of $0.03 per Right (the "Redemption Price"), in accordance with Baker     
Hughes' Stockholder Rights Agreement.  Additionally, the Baker Hughes Board     
of Directors declared a total distribution in the amount of $.115 per share     
of Baker Hughes Common Stock, payable May 24, 1996, to holders of record on     
May 6, 1996; which distribution includes the Redemption Price.                  

A table of comparative results follow:                                          
- 2 -     

(In thousands, except per share amounts)                                        

                           Three Months Ended         Six Months Ended
                              March 31,                  March 31,
                           1996           1995        1996        1995

REVENUES:                                                                       
Sales                       $  500,276  $  447,302   $   965,231  $  859,209  
Services and rentals           244,546     205,307       474,288     400,317  
                             -------     -------     ---------   ---------
Total revenues                744,822     652,609     1,439,519   1,259,526 
                             -------     -------     ---------   ---------
COSTS AND EXPENSES:                                                             
Cost of sales                  292,928     258,533       560,264     500,349  
Cost of services and rentals   126,311      99,880       244,610     194,939  
Research and engineering        21,206      20,760        42,614      40,847  
Marketing and field service    164,138     149,132       325,377     294,081  
General and administrative      48,725      57,288        96,943     101,604  
Amortization of goodwill and                                                  
other intangibles               7,454       7,463        14,847      15,340 
                             -------     -------     ---------   ---------
Total costs and expenses       660,762     593,056     1,284,655   1,147,160  
                             -------     -------     ---------   ---------

Operating income                 84,060      59,553       154,864     112,366   
Interest expense                (14,801)    (13,701)      (30,228)    (25,180)  
Interest income                   1,303       1,268         1,785       2,075   
                             -------     -------       -------     -------

Income before income taxes       70,562      47,120       126,421      89,261   
Income taxes                    (29,003)    (19,120)      (52,464)    (37,030)  
                             -------     -------       -------     -------

Income before cumulative effect                                                 
of accounting change            41,559      28,000        73,957      52,231  

Cumulative effect of                                                            
accounting change -                                                           
Postemployment benefits                                                       
(net of $7,861 income                                                         
tax benefit)                                                         (14,598) 
                             -------     -------       -------     -------
Net income                     $ 41,559    $ 28,000      $ 73,957    $ 37,633   
                             =======     =======       =======     =======

-3 -    

(In thousands, except per share amounts)                                        

                           Three Months Ended         Six Months Ended
                              March 31,                  March 31,
                           1996           1995        1996        1995

Per share of Common Stock:                                                      
Income before cumulative                                                      
effect of accounting change * $  .29       $  .18       $  .52       $  .33   
Cumulative effect of                                                          
accounting change                                                     (.10) 
                            ------       ------       ------       -------
Net income *                  $  .29       $  .18       $  .52       $  .23   
                           ======       ======       ======       ======

Average shares outstanding                                                      
during period                142,654      141,032      142,467      141,005   

Depreciation expense         $ 29,415     $ 28,746     $ 58,777     $ 57,443    
Capital expenditures         $ 51,636     $ 32,843     $ 86,312     $ 58,524    

* The per share amount for the three and six months ended March 31, 1995 has    
been adjusted for dividends on preferred stock of $3.0 million and $6.0     
million, respectively.                                                      

Baker Hughes is a leading provider of products and services for the oil, gas    
and process industries.                                                         

* * * * * *       

NOT INTENDED FOR DISTRIBUTION TO BENEFICIAL HOLDERS                             

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Dates Referenced Herein   and   Documents Incorporated By Reference

This 8-K Filing		Date		Other Filings
		3/31/95		10-Q
For The Period Ended		4/24/96
Filed On / Filed As Of		4/25/96		SC 13D/A
		5/6/96
		5/24/96
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