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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (date of earliest event reported)
OCTOBER 24, 1995
Halliburton Company
(Exact name of registrant as specified in its charter)
State or other Commission IRS Employer
jurisdiction File Number Identification
of incorporation Number
Delaware 1-3492 No. 73-0271280
3600 Lincoln Plaza
500 North Akard Street
Dallas, Texas 75201-3391
(Address of principal executive offices)
Registrant's telephone number,
including area code - 214/978-2600
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INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
The registrant may, at its option, report under this item any events,
with respect to which information is not otherwise called for by this form, that
the registrant deems of importance to security holders.
On October 24, 1995, the registrant issued a press release entitled
Halliburton Reports Strong Third Quarter, pertaining, among other things, to an
announcement that registrant reported substantially higher earnings of $68.8
million, or $.60 per share, from continuing operations for the 1995 third
quarter compared to $49.5 million, or $.43 per share in the 1994 third quarter.
The combined net income of both continuing operations and discontinued
operations for the 1995 third quarter was $1.1 million, or $.01 per share,
compared to $51.7 million, or $.45 per share, for the 1994 comparable quarter.
The foregoing summary is subject to the full text of the press release
with respect thereto, a copy of which is attached hereto as Exhibit 20, which
exhibit is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
List below the financial statements, pro forma financial information
and exhibits, if any, filed as part of this report.
(c) Exhibits.
Exhibit 20 - Press release dated October 24, 1995
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HALLIBURTON COMPANY
Date: October 25, 1995 By: _______________________
Susan S. Keith
Vice President, Secretary
and Corporate Counsel
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EXHIBIT INDEX
Exhibit Sequentially
Number Description Numbered Page
20 Press Release of
October 24, 1995 5 of 8
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact-Guy T. Marcus
October 24, 1995 Vice President-Inv. Rel.
(214) 978-2691
HALLIBURTON REPORTS STRONG THIRD QUARTER
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today reported
substantially higher earnings of $68.8 million, or $.60 per share, from
continuing operations for the 1995 third quarter compared to $49.5 million, or
$.43 per share in the 1994 third quarter. Continuing operations consist of the
company's core business segments Halliburton Energy Services and Engineering and
Construction Services.
Discontinued operations consist of the company's insurance services
business segment. During the 1995 third quarter Halliburton announced plans to
spin-off its Highlands Insurance Group, Inc. subsidiary to Halliburton
shareholders by the end of 1995. In connection with the planned spin-off, in the
1995 third quarter Highlands increased reserves for claim losses and related
expenses and provided for certain legal matters of the discontinued business.
These charges, together with certain other provisions associated with
Halliburton's complete exit from the insurance business and the operating
results of Highlands produced an after-tax loss of $67.7 million, or $.59 per
share, by the discontinued insurance business in the 1995 third quarter compared
to income of $2.2 million, or $.02 per share, in the year earlier period.
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The combined net income of both continuing operations and discontinued
operations for the 1995 third quarter was $1.1 million, or $.01 per share,
compared to $51.7 million, or $.45 per share, for the 1994 comparable quarter.
The Halliburton Energy Services business segment's revenues were $683.0
million for the 1995 third quarter, an increase of 6% compared to the 1994 third
quarter. During such period the worldwide rotary rig count declined by about 3%.
The year ago quarter included revenues of some businesses sold in late 1994 and
revenues, on a comparable basis, increased 9%. International business increased
18% compared to the year earlier quarter and accounted for 60% of the 1995 third
quarter's total revenues. Growth was recognized in all international regions,
with the largest gain experienced in Latin America.
Halliburton Energy Services' operating income was $88.2 million in the 1995
third quarter, 8% above the year earlier quarter and a 24% increase compared to
the 1995 second quarter. Operating margins improved to 12.9% in the 1995 third
quarter.
The Engineering and Construction Services business segment's 1995 third
quarter revenues of $806.8 million were 14% higher than the year earlier period,
while operating income increased 55% compared to the 1994 third quarter.
Operating margins improved to 3.9% compared to 2.9% last year. Increased
revenues and operating income were led by the Brown & Root Energy Services
business unit.
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Thomas H. Cruikshank, Halliburton Company's chairman of the board, said,
"Halliburton's strong performance in the 1995 third quarter reflects continued
earnings progress at both Halliburton Energy Services and Brown & Root's
engineering and construction businesses and such growth is being accompanied by
improving profit margins. Our businesses are benefitting from the restructuring
and cost efficiency programs implemented over the past several years. I am
optimistic about future prospects for both business segments as they focus their
resources on developing new business opportunities in the growing international
marketplace.
"The spin-off of Highlands to Halliburton's shareholders completes our exit
from the insurance business. The spin-off is a win-win action in that
Halliburton can now give its entire focus to its core businesses, while
Highlands can now go forward as an independent company with a strategy based
solely on its own objectives."
Halliburton Company is one of the world's largest diversified energy
services, engineering, maintenance, and construction companies. Founded in 1919,
Halliburton provides a broad range of energy services and products, industrial
and marine engineering and construction services.
# # #
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HALLIBURTON COMPANY
Quarter Ended Nine Months Ended
September 30, September 30,
--------- --------- --------- ---------
1995 1994 1995 1994
--------- --------- --------- ---------
Millions of dollars except per share data
Revenues
Energy services $ 683.0 $ 642.8 $1,881.6 $1,847.4
Engineering and
construction services 806.8 704.8 2,279.7 2,185.1
--------- --------- --------- ---------
Total revenues $1,489.8 $1,347.6 $4,161.3 $4,032.5
========= ========= ========= =========
Operating income
Energy services $ 88.2 $ 81.9 $ 211.5 $ 95.2
Engineering and
construction services 31.2 20.2 80.2 45.8
General corporate
expenses (8.3) (5.5) (21.9) (17.6)
--------- --------- --------- ---------
Total operating income 111.1 96.6 269.8 123.4
Interest expense (15.0) (12.6) (40.1) (33.6)
Interest income 10.0 2.7 24.2 8.4
Foreign currency
gains (losses) (2.5) (1.7) 0.6 (15.2)
Other nonoperating, net 0.3 (0.8) 0.5 0.4
--------- --------- --------- ---------
Income from continuing operations
before income taxes and
minority interest 103.9 84.2 255.0 83.4
Provision for
income taxes (34.9) (35.0) (92.1) (33.3)
Minority interest (0.2) 0.3 (1.0) 0.0
--------- --------- --------- ---------
Income from continuing
operations 68.8 49.5 161.9 50.1
Income (loss) from
discontinued operations,
net of income taxes (67.7) 2.2 (65.5) 0.2
--------- --------- --------- ---------
Net income $ 1.1 $ 51.7 $ 96.4 $ 50.3
========= ========= ========= =========
Income (loss) per share:
Continuing operations $ 0.60 $ 0.43 $ 1.41 $ 0.44
Discontinued operations (0.59) 0.02 (0.57) 0.00
Net income 0.01 0.45 0.84 0.44
Average common and common share
equivalents outstanding 114.6 114.2 114.4 114.2
* Per share amounts are based upon average number of common and
common share equivalents outstanding.
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