By Dow Jones Business News, October 18, 2013, 06:34:00 AM EDT
By Nathalie Tadena
Baker Hughes Inc.'s ( BHI ) third-quarter earnings rose 22% as the oil field services company's North American segment
logged stronger results.
A glut of natural-gas supply has led to lower prices and pushed energy companies to shift operations to oil-rich
shale, which is harder to tap, a transition that has resulted in inefficiencies and higher costs for oil field-services
providers and has challenged Baker Hughes' pressure-pumping business. However, the North American segment in the latest
period posted improved profit and revenue. Baker Hughes said drilling services, completion systems, artificial lift and
upstream chemicals businesses drove growth in North America.
Overall, Baker Hughes reported a profit of $341 million, or 77 cents a share, up from $279 million, or 63 cents a
share, a year earlier. Excluding items severance charges in the latest period and plant-closure costs and charges
related to information-technology asset a year earlier, adjusted per-share earnings rose to 81 cents from 73 cents.
Revenue rose 8.1% to $5.79 billion.
Analysts polled by Thomson Reuters had most recently forecast per-share earnings of 78 cents on revenue of $5.77
In the North American segment--the company's largest geographic business by revenue-- profit improved 2.4% while
revenue increased 4.1%. Profit and revenue improved in Baker Hughes' other geographic regions from a year earlier,
except for Latin America.
Shares closed at $51.78 and were inactive premarket. The stock is up 27% year-to-date.
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