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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)
JULY 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 July 22, 1998 registrant issued a press release entitled Halliburton
1998 Second Quarter Net Income Up 34 Percent pertaining, among other things, to
an announcement that registrant's 1998 second quarter net income of $136.5
million increased 34 percent compared to $101.9 million earned in the 1997
second quarter. Registrant's consolidated revenues were $2,475.6 million in the
1998 second quarter, an increase of 11 percent over last year's second quarter.
For the six month period ended June 30, 1998, net income increased 38 percent
to $254.3 million while revenues were 17 percent higher than the 1997 six month
period.
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 July 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: July 23, 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 7
July 22, 1998
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
07/22/98 Vice President-Investor Relations
(214) 978-2691
HALLIBURTON 1998 SECOND QUARTER NET INCOME UP 34 PERCENT
DALLAS, Texas -- Halliburton Company (NYSE:HAL) reports 1998 second
quarter net income of $136.5 million ($ .51 per share diluted), an increase of
34 percent compared to $101.9 million ($ .40 per share diluted) earned in the
1997 second quarter. Strong profitability improvements were experienced by both
of the company's business segments. Halliburton's consolidated revenues totalled
$2,475.6 million in the 1998 second quarter, 11 percent higher than last year's
second quarter.
For the six month period ending June 30, 1998, net income increased 38
percent to $254.3 million ($. 95 per share diluted) while revenues were 17
percent higher than the 1997 six month period.
The Energy Group business segment's revenues were $1,707.0 million in
the 1998 second quarter, 17 percent higher than the year ago quarter. Strongest
revenue growth was recorded by the Brown & Root Energy Services and Halliburton
Energy Services business units. International revenues increased by more than 20
percent in the 1998 second quarter compared to a year ago. The segment's strong
international presence countered slower growth in the U.S .
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The Energy Group's 1998 second quarter operating income increased 24
percent to $198.3 million compared to the prior year period. With operating
income growing faster than revenues, the segment's operating margin improved to
11.6 percent for the 1998 second quarter compared to 11.0 percent in the 1997
quarter.
The Engineering and Construction Group business segment's 1998 second
quarter operating income increased 66 percent to $49.9 million compared to the
1997 quarter, although revenues were essentially the same as a year ago. Second
quarter operating income benefitted from a claim on a Middle Eastern
construction project. The 1998 second quarter operating margin for the segment
improved to 6.5 percent compared to last year's 3.9 percent. Stronger financial
results were experienced by the chemicals/olefins and refining lines of
business.
Dick Cheney, Halliburton Company's chairman of the board and chief
executive officer, said, "Halliburton continues to make good financial progress
despite uncertainty over future oil demand and the slowing of some of our
customers' exploration and production activities during the quarter. This
uncertainty hanging over the industry will continue to influence spending plans
for the second half of the year, as well. We are monitoring market conditions
and will make appropriate adjustments to sustain operating efficiencies.
However, I believe that Halliburton's integrated organizational structure and
breadth of capabilities gives us a significant advantage in serving our
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customers, particularly when many of them are facing some tough decisions.
Prospects for a continuation for future growth in the company's engineering and
construction related activities are enhanced by a total backlog of $7.3 billion
at the end of the 1998 second quarter, up five percent compared to the first
quarter."
Cheney continued, "Halliburton and Dresser Industries, Inc. (NYSE:DI)
continue to make progress towards completing previously announced plans for the
companies to merge. In June shareholders of both companies voted in favor of
proposals to merge the companies and in recent weeks the merger has received
clearances from the European Commission and the Canadian Bureau of Competition
Policy. At the present time the companies have other regulatory filings in
process with the U.S. Department of Justice and regulatory agencies in certain
other countries. The companies look forward to completing the merger during the
fall of 1998 and begin benefitting from synergies designed to enhance future
performance."
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 Six Months Ended
June 30 June 30
---------- ---------- ---------- ----------
1998 1997 1998 1997
---------- ---------- ---------- ----------
Millions of dollars except per share data
Revenues
Energy Group $ 1,707.0 $ 1,456.4 $ 3,296.2 $ 2,576.7
Engineering and
Construction Group 768.6 774.7 1,534.7 1,551.9
---------- ---------- ---------- ----------
Total revenues $ 2,475.6 $ 2,231.1 $ 4,830.9 $ 4,128.6
========== ========== ========== ==========
Operating income
Energy Group $ 198.3 $ 160.1 $ 383.3 $ 277.3
Engineering and
Construction Group 49.9 30.0 78.7 59.4
General corporate (9.8) (8.1) (19.6) (16.0)
---------- ---------- ---------- ----------
Total operating
income 238.4 182.0 442.4 320.7
Interest expense (12.7) (9.7) (24.0) (15.8)
Interest income 3.5 2.1 6.9 6.5
Foreign currency
gains (losses) (0.1) (0.4) 2.3 0.6
Other nonoperating,
net (0.4) (0.1) (0.5) 0.5
---------- ---------- ---------- ----------
Income before
income taxes and
minority interests 228.7 173.9 427.1 312.5
Provision for
income taxes (88.3) (68.5) (165.3) (121.2)
Minority interest
in net income
of subsidiaries (3.9) (3.5) (7.5) (6.4)
---------- ---------- ---------- ----------
Net income $ 136.5 $ 101.9 $ 254.3 $ 184.9
========== ========== ========== ==========
Basic income
per share $ 0.52 $ 0.40 $ 0.97 $ 0.73
Diluted income
per share $ 0.51 $ 0.40 $ 0.95 $ 0.72
Basic average
common shares
outstanding 262.9 253.1 262.8 252.9
Diluted average
common shares
outstanding 266.5 256.0 266.3 255.7
Basic and diluted per share amounts are presented in accordance with SFAS 128,
"Earnings per Share".
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