UPDATE: Baker Hughes Shares Reverse Course, Rise 4% on Lowered Guidance
Shares of Baker Hughes ( BHI ) are up 3.7% to $42.15, after trading as low as $39.65 earlier this morning after the company projected North America revenue and profit margins to be lower than previous expectations.
The forecast change was due to weaker than anticipated onshore activity and further price erosion within pressure pumping operations. It now sees North America operating profit before tax margin to be between 8.5% and 9.5% for Q4, as compared to 11.7% in Q3 of 2012.
The company also expects international operating profit before tax margin to be similar to the 12% reported in Q3 of 2012, excluding the impact of bad debts recognized in Latin America and Europe.
Shares of BHI are in a 52-week range of $37.08 - $52.96 and have fallen 8% in the last 12 months.