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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)
DECEMBER 28, 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 December 28, 1998 registrant issued a press release entitled
Halliburton Items Affecting 1998 Fourth Quarter pertaining, among other things,
to an announcement that registrant plans to take a $35 million pretax ($24
million after tax or $.05 per diluted share) special charge in the 1998 fourth
quarter to provide for a reduction of an additional 2,750 employees from its
Energy Services Group business segment. Although the quarter has not yet been
completed, registrant expects to earn about $.14 to $.16 per diluted share in
the 1998 fourth 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 December 28, 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 7, 1999 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 6
December 28, 1998
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
December 28, 1998 Vice President-Investor Relations
(214) 978-2691
HALLIBURTON ITEMS AFFECTING 1998 FOURTH QUARTER
DALLAS, Texas -- Halliburton Company (NYSE:HAL) today announced that it
plans to take a $35 million pretax ($24 million after tax or $ .05 per diluted
share) special charge in the 1998 fourth quarter to provide for a reduction of
an additional 2,750 employees from its Energy Services Group business segment.
This employment reduction is in response to the business impact of low crude oil
prices and oil company customers' plans to sharply reduce spending in 1999.
A number of customers, for whom the company is working on projects in
the North Sea, North Africa and Latin America, have been negatively impacted by
the current low oil price market environment. As a result, these customers have
restricted their capital spending and they have recently placed extraordinary
pressure on the project claims resolution process and are now rejecting some of
the company's claims for additional cost incurred by the company. This is in
stark contrast to more favorable negotiating strategies employed by such
customers only months ago which might have resulted in more equitable resolution
to these types of claims. The same economic pressures have more dramatically
impacted some of the company's joint venture partners and major subcontractors
in several of these projects. Their inability to maintain their share of the
contractual cost, schedule and financial obligations of such projects has placed
additional financial burdens on the company. These pressures have become more
acute in the 1998 fourth quarter and particularly affect contracts in the Brown
& Root Energy Service business unit. Consequently, the company determined that
-more-
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Halliburton Company page 2
in accordance with generally accepted accounting principles, it will provide
$60 million pretax for project losses in the 1998 fourth quarter.
Although the quarter has not yet been completed, after taking into
account the personnel reduction special charges and recognizing costs relating
to the project losses, Halliburton now expects to earn about $ .14 to $ .16 per
diluted share in the 1998 fourth quarter.
Halliburton Company, founded in 1919, is the world's largest provider
of products and services to the petroleum and energy industries. The company
serves its customers with a broad range of products and services through its
Energy Services Group, Engineering and Construction Group, and Dresser Equipment
Group business segments. In 1997 Halliburton conducted business with a workforce
of approximately 100,000 in over 120 countries. The company's World Wide Web
site can be accessed at http://www.halliburton.com.
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 company's actual results of operations. Please see Halliburton's Form
10-Q for the quarter ended September 30, 1998 for a more complete discussion of
such risk factors.
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