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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)
APRIL 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 April 22, 1998 registrant issued a press release entitled
Halliburton 1998 First Quarter Net Income Up 42 Percent pertaining, among other
things, to an announcement of its 1998 first quarter net income of $117.8
million ($.44 per share diluted), an increase of 42 percent compared to 1997
first quarter net income of $83.0 million ($.32 per share diluted).
Registrant's 1998 consolidated revenues for the first quarter increased 24
percent to $2.4 billion, compared to the year earlier quarter.
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 April 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: April 22, 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 8
April 22, 1998
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus Dirk Vande Beek
April 22, 1998 V.P.-Inv. Rel. Media Relations
(214) 978-2691 (713) 676-8097
HALLIBURTON 1998 FIRST QUARTER NET INCOME UP 42 PERCENT
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today announces 1998
first quarter net income of $117.8 million ($ .44 per share diluted), a 42
percent increase compared to 1997 first quarter net income of $83.0 million ($
.32 per share diluted). Halliburton's consolidated revenues for the 1998 first
quarter increased 24 percent to $2.4 billion, compared to the year earlier
quarter. Strong financial performance by the Energy Group business segment
positively impacted the company's consolidated revenues and net income.
The Energy Group's 1998 first quarter revenues totaled $1.6 billion, an
increase of 42 percent compared to the 1997 first quarter. Revenue growth was
particularly strong in international markets where revenues increased by more
than 50 percent from a year ago. The business segment's 1998 first quarter
operating income increased to $185 million, 58 percent higher than last year's
first quarter. The strong operating income increase improved the Energy Group's
operating margin to 11.6 percent in the 1998 first quarter, compared to 10.5
percent last year. The Energy Group's financial results benefitted from strong
revenue growth by the Halliburton Energy Services and Brown & Root Energy
Services business units during the 1998 first quarter.
-more-
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Halliburton Company -2-
The Engineering and Construction Group's 1998 first quarter revenues,
operating income and operating margins were $766.1 million, $28.8 million
and 3.8 percent, respectively. The business segment's financial results
were about the same as the year ago quarter. Financial results in the 1998
first quarter were flat largely due to restructuring actions taken by the
Group to exit from the environmental business and lower levels of pulp and
paper industry activities. Also, a later than expected start-up of a
contract to refit United Kingdom submarines at the company's Devonport
Royal Dockyard, as well as the continued wind-down of a contract to provide
logistical support services to U.S. troops stationed in Bosnia, reduced the
Engineering and Construction Group's revenues.
Dick Cheney, Halliburton Company's chairman of the board and chief
executive officer, said, "The Energy Group continued strong worldwide growth in
the 1998 first quarter, with revenues increasing by 42 percent. This growth
increased our capacity utilization and favorably impacted profit margins. We
look for continued Energy Group progress during the balance of 1998.
"Our Engineering and Construction business is positioned for improved
performance as the year progresses. The total engineering and construction
backlog at March 31, 1998 was $7.0 billion, an increase of 20 percent compared
to a year ago, which will contribute favorably to future financial results.
"In summary, the management team at Halliburton believes the
opportunities for the future are excellent. Customers worldwide are continuing
to implement plans for multi-year projects in order to meet anticipated
long-term market needs."
-more-
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Halliburton Company -3-
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.
###
NOTE: In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, Halliburton Company cautions that
statements in this press release which are forward looking and which provide
other than historical information, involve risks and uncertainties that may
impact the companies' actual results of operations. Please see Halliburton's
Form 10-K for the fiscal year ended December 31, 1997 for a more complete
discussion of such risk factors.
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HALLIBURTON COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended
March 31
--------------------
1998 1997
-------- --------
Millions of dollars except per share data
Revenues
Energy Group $ 1,589.2 $ 1,120.3
Engineering and
Construction Group 766.1 777.2
---------- ----------
Total revenues $ 2,355.3 $ 1,897.5
========== ==========
Operating income
Energy Group $ 185.0 $ 117.2
Engineering and
Construction Group 28.8 29.4
General corporate (9.8) (7.9)
---------- ----------
Total operating income 204.0 138.7
Interest expense (11.3) (6.1)
Interest income 3.4 4.4
Foreign currency gains 2.4 1.0
Other nonoperating, net (0.1) 0.6
---------- ----------
Income before income taxes
and minority interests 198.4 138.6
Provision for income taxes (77.0) (52.7)
Minority interest in net (income)
loss of subsidiaries (3.6) (2.9)
---------- ----------
Net income $ 117.8 $ 83.0
========== ==========
Basic income per share $ 0.45 $ 0.33
Diluted income per share $ 0.44 $ 0.32
Basic average common
shares outstanding 262.6 252.7
Diluted average common
shares outstanding 266.3 255.5
Per share amounts for the first quarter of 1997 are 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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