Baker Hughes Inc.
), one of the largest oilfield service companies in the world,
reported strong third-quarter 2013 results owing to impressive
operating performances from its Middle East/Asia-Pacific and
Europe/Africa/Russia Caspian business units.
Adjusted earnings (excluding severance charges related to
restructuring in Latin America) came in at 81 cents a share,
surpassing the Zacks Consensus Estimate of 78 cents. The
quarterly figure also increased 2.5% from the year-ago adjusted
79 cents per share.
Total revenue of $5,787.0 million increased 8.1% from the
year-ago level of $5,355.0 million. The top line also surpassed
the Zacks Consensus Estimate of $5,745.0 million.
Second Quarter Segmental Highlights
Of the total quarterly revenue, North America,
Europe/Africa/Russia Caspian, Middle East/Asia-Pacific and Latin
America accounted for 49.3%, 17.0%, 18.4% and 9.6%, respectively.
The remainder was generated by the Industrial Services segment.
An improvement in before-tax profit was noticed only in the
Middle East/Asia-Pacific and Europe/Africa/Russia Caspian
regions. The Middle East/Asia-Pacific region recorded a profit
before-tax margin of 15.0% versus 9.0% in the year-ago quarter.
While the Europe/Africa/Russia Caspian region posted profit
before-tax margin of 17.0% against 13% in the previous year.
All other segments registered lackluster pre-tax margins, with
the North America region coming in at 10.0% (compared with 12.0%
in the year-earlier quarter). Pre-tax margins at the Latin
America segment came in at negative 1.0% (versus 9.0% in the
year-earlier quarter) and at the Industrial Services segment
stood at 12.0% (versus 13.0% in the year-ago quarter).
At the end of the third quarter, Baker Hughes had $1,368.0
million in cash and cash equivalents, while long-term debt was
$3,838.0 million, representing a debt-to-capitalization ratio of
20.3%. Baker Hughes' capital expenditures were $511.0 million in
Baker Hughes retains a Zacks Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, one can look at oil field services firms like
Core Laboratories NV
Exterran Holdings Inc.
) that offer better prospects. All the stocks sport a Zacks Rank
BAKER-HUGHES (BHI): Free Stock Analysis
CORE LABS NV (CLB): Free Stock Analysis
EXTERRAN HLDGS (EXH): Free Stock Analysis
SCHLUMBERGER LT (SLB): Free Stock Analysis
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