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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)
JANUARY 22, 1998
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. 75-2677995
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 January 22, 1998 registrant issued a press release entitled
Halliburton 1997 Fourth Quarter Up 38 Percent pertaining, among other things, to
an announcement that registrant's fourth quarter net income was $148.4 million
($.56 per share diluted), an increase of 38 percent compared to the 1996 fourth
quarter earnings of $107.6 million ($.43 per share diluted). Registrant's 1997
fourth quarter revenues were $2.4 billion, 20 percent higher than the year
earlier quarter. For the full year of 1997, registrant's net income increased 51
percent to $454.4 million ($1.75 per share diluted) compared to 1996, while
revenues increased 19 percent above 1996 results to $8.8 billion.
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 January 22, 1998.
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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: January 27, 1998 By: /s/ Susan S. Keith
------------------------------
Susan S. Keith
Vice President and Secretary
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EXHIBIT INDEX
Exhibit Sequentially
Number Description Numbered Page
20 Press Release of 5 of 9
January 22, 1998
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus Dirk Vande Beek
January 22, 1998 V.P. -Inv. Rel. Media Relations
(214) 978-2691 (713) 676-8097
HALLIBURTON 1997 FOURTH QUARTER UP 38 PERCENT
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today reports 1997
fourth quarter net income of $148.4 million ($ .56 per share diluted), an
increase of 38 percent compared to the 1996 fourth quarter's earnings of $107.6
million ($ .43 per share diluted). The strong earnings growth was driven by
substantially higher levels of profitability at both of Halliburton's business
segments. Halliburton's 1997 fourth quarter revenues were $2.4 billion, 20
percent higher than the year earlier quarter.
For the full year of 1997, Halliburton's net income increased 51
percent to $454.4 million ($1.75 per share diluted) compared to 1996, while
revenues increased 19 percent above 1996 results to $8.8 billion.
The Energy Services Group business segment's 1997 fourth quarter
revenues reached $1.7 billion, 32 percent higher than the year earlier quarter.
Each of the segment's four business units - Halliburton Energy Services, Brown &
Root Energy Services, Landmark Graphics Corporation and Halliburton Energy
-more-
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Halliburton Company 2
Development - posted strong 1997 fourth quarter revenue gains. The growth was
experienced worldwide. Fourth quarter 1997 revenues from activities in the
United States increased 32 percent compared to a year ago, while international
revenues increased 31 percent.
The Energy Services Group business segment's operating income for the
1997 fourth quarter was $226.7 million, 42 percent higher than the year ago
period. The operating income is inclusive of a $20.5 million loss provision ($
.04 per share diluted after tax) in the 1997 fourth quarter, relating to a Brown
& Root Energy Services (BRES) job in the Middle East. The operating margin for
the segment, including the impact of the BRES provision, was 13.5 percent for
the 1997 fourth quarter compared to 12.5 percent a year earlier. Higher
operating income and margins resulted from a combination of increased levels of
demand, a strengthened pricing environment, and an expanded sales mix of
technology driven and value added products and services.
The Engineering and Construction Group business segment's 1997
fourth quarter revenues were $707.4 million, off one percent from a year
earlier. Flat revenues were due, in part, to actions taken to withdraw from
highway/paving, environmental, and certain types of engineering and
construction activities while focusing more resources on petroleum, chemical
-more-
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Halliburton Company 3
and forest products projects which should be more profitable in the long-term.
The Engineering and Construction Group segment's operating income
doubled to $43.2 million, compared to the 1996 fourth quarter. The segment's
operating income and margins are continuing to benefit from restructuring and
other cost efficiency initiatives which have been implemented during the past
year.
Dick Cheney, Halliburton Company's chairman of the board and chief
executive officer, said, "Halliburton made excellent financial performance
progress in 1997, and the company was also able to substantially improve its
future outlook and competitive position through the execution of several
significant strategic programs during the year."
"Some of the significant programs achieved in 1997 included the
successful consolidation and restructuring of the Engineering and Construction
Group business segment; the establishment of a new shared services organization
in 1996 is now providing more cost effective functional services on a
company-wide basis; introduction of leading-edge technologies; completion of
strategic acquisitions that further strengthen the company's technological
-more-
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Halliburton Company 4
position and extend its market presence; and the establishment of a
market leadership position in providing customers with single source
life of the well capabilities."
Cheney concluded, "Halliburton will utilize its financial and strategic
successes of 1997 as the foundation for driving continued growth and progress in
1998. I am optimistic about the coming year based on discussions with our
petroleum industry customers and their plans for 1998. Also, Halliburton's
engineering and construction business operations enter 1998 with a backlog
totaling $6.9 billion, an increase of 43 percent from a year ago, which provides
the company with excellent growth opportunities."
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
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended Twelve Months Ended
December 31 December 31
---------------------------- -----------------------------
1997 1996 1997 1996
------------- ------------- ------------- --------------
Millions of dollars except per share data
Revenues
Energy Group $ 1,677.9 $ 1,275.9 $ 5,756.4 $ 4,286.3
Engineering and
Construction Group 707.4 713.8 3,062.2 3,098.8
------------- ------------- ------------- --------------
Total revenues $ 2,385.3 $ 1,989.7 $ 8,818.6 $ 7,385.1
============= ============= ============= ==============
Operating income
Energy Group $ 226.7 $ 159.7 $ 706.4 $ 484.4
Engineering and
Construction Group 43.2 21.6 133.9 53.7
Special charges - - (8.6) (85.8)
General corporate (9.5) (8.0) (33.6) (34.4)
------------- ------------- ------------- --------------
Total operating income 260.4 173.3 798.1 417.9
Interest expense (13.5) (6.4) (42.7) (24.1)
Interest income 2.4 2.3 11.7 14.2
Foreign currency losses (1.2) (1.2) (0.9) (3.9)
Other nonoperating, net (0.3) (0.3) 0.1 0.1
------------- ------------- ------------- --------------
Income before income taxes
and minority interests 247.8 167.7 766.3 404.2
Provision for income taxes (97.6) (59.8) (300.0) (103.3)
Minority interest in net (income)
loss of subsidiaries (1.8) (0.3) (11.9) (0.5)
------------- ------------- ------------- --------------
Net income $ 148.4 $ 107.6 $ 454.4 $ 300.4
============= ============= ============= ==============
Basic income per share $ 0.57 $ 0.43 $ 1.78 $ 1.20
Diluted income per share $ 0.56 $ 0.43 $ 1.75 $ 1.19
Basic average common
shares outstanding 262.1 250.5 255.4 249.9
Diluted average common
shares outstanding 266.9 252.9 259.5 252.2
Per share amounts are based upon average number of common and common share
equivalents outstanding adjusted for the two-for-one common stock split declared
on June 9, 1997, and effected in the form of a stock dividend on July 21, 1997,
to shareholders of record on June 26, 1997. Basic and diluted per share amounts
are presented in accordance with SFAS 128, "Earnings per Share".
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