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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, 1999
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, 1999 registrant issued a press release entitled Halliburton
Reports 1999 Second Quarter Earnings pertaining, among other things, to an
announcement that registrant's 1999 second quarter net income was $83 million
($.19 per share diluted) compared to $243 million ($.55 per share diluted)
earned in the 1998 second quarter. Consolidated total revenues were $3.7
billion in the 1999 second quarter, 20 percent lower than the year ago 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 July 22, 1999.
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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, 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 8
July 22, 1999
Incorporated by Reference
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FOR IMMEDIATE RELEASE Contact: Guy T. Marcus
July 22, 1999 Vice President-Investor Relations
(214) 978-2691
HALLIBURTON REPORTS 1999 SECOND QUARTER EARNINGS
DALLAS, Texas - Halliburton Company (NYSE:HAL) reported today that the
company's 1999 second quarter net income was $83 million ($ .19 per share
diluted) compared to $243 million ($ .55 per share diluted) earned in the 1998
second quarter. Consolidated total revenues were $3.7 billion in the 1999 second
quarter, 20 percent lower than the year ago quarter. The $83 million of net
income was benefited by $32 million after tax ($ .07 per share diluted) from a
change in estimates related to items included in the 1998 special charge, and
was reduced by $33 million after tax ($ .07 per share diluted) for a combination
of items including a write down of Halliburton Company's investment in Bufete
Industriale, S.A . de C.V. of $16 million after tax ($. 04 per share diluted),
merger related period costs, and additional severance and facility closures not
included in the 1998 merger plan.
Financial results of each of Halliburton's three business segments,
particularly its Energy Services Group, were negatively impacted by sharply
lower worldwide levels of capital and operational expenditures by the company's
petroleum industry customers.
The Energy Services Group business segment's revenues were $1,681
million in the 1999 second quarter, a 29 percent decline compared to the 1998
quarter. The revenues decline of the company's largest business segment was the
result of a severe worldwide drop-off of oil and natural gas exploration and
development activity. Hardest hit was the United States where the 1999 second
quarter average rotary rig count fell 40
-more-
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Halliburton Company page 2
percent below the year ago level, and in April 1999 reached an all-time low. The
1999 second quarter worldwide rotary rig count fell 33 percent below the 1998
quarter. Largely as a result of these geographic activity level differences, 27
percent of the segment's 1999 second quarter revenues were derived from United
States business, down from 32 percent a year earlier.
While the Energy Services Group's revenues were better than general
market indicators, such as the rotary rig count, the sharp decline of business
activity levels resulted in an excessive amount of under-utilized capacity
which, in turn, led to intensive price competition for the smaller amount of
available business. As a result, the Energy Services Group's operating income
declined to $49 million in the 1999 second quarter, down from $304 million a
year earlier.
The Engineering and Construction Group business segment had revenues of
$1,372 million in the 1999 second quarter, a five percent decline from the 1998
quarter. Slowing of business activity in forest products, mining and minerals,
manufacturing and the ammonia/fertilizers lines of business were partially
offset by growth of the government operations, maintenance and logistics
business. Revenues derived from international business increased to 68 percent
of the segment's total in the 1999 second quarter, compared to 61 percent in
last year's quarter. Operating income from the Engineering and Construction
Group in the 1999 second quarter was $64 million compared to $74 million in the
1998 quarter. Excluding a settlement on a Middle East construction project
recognized in last year's second quarter, 1999 second quarter operating income
of $64 million and operating margin of 4.7 percent was higher than last year.
The Dresser Equipment Group business segment's revenues for the 1999
second quarter were $617 million, operating income was $53 million and its
operating margin was 8.6 percent. Reduced business activity, particularly by
petroleum industry customers, impacted the lower financial results as compared
to a year ago.
-more-
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Halliburton Company page 3
Dick Cheney, Halliburton's chief executive officer, said, "The 1999
second quarter was a tremendous challenge for Halliburton as industry conditions
reached historic lows. However, the benefits of our aggressive cost reduction
program and restructuring activities allowed us to remain profitable during this
most difficult period. Given the recent strengthening in crude oil and natural
gas prices, and in the United States rotary rig count, we remain optimistic that
we will see improved business opportunities in the second half of 1999 and in
the year 2000."
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. 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 March 31, 1999 for a more complete discussion of
such risk factors.
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HALLIBURTON COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarter Ended Six Months Ended
June 30 June 30
------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------- -------------
Millions of dollars except per share data
Revenues
Energy Services Group $ 1,681 $ 2,381 $ 3,434 $ 4,666
Engineering and
Construction Group 1,372 1,438 2,880 2,785
Dresser Equipment Group 617 766 1,280 1,389
------------ ------------ ------------- -------------
Total revenues $ 3,670 $ 4,585 $ 7,594 $ 8,840
============ ============ ============= =============
Operating income
Energy Services Group $ 49 $ 304 $ 106 $ 587
Engineering and
Construction Group 64 74 122 133
Dresser Equipment Group 53 77 107 116
Special charge credits 47 - 47 -
General corporate (17) (19) (34) (39)
------------ ------------ ------------- -------------
Total operating income 196 436 348 797
Interest expense (34) (31) (70) (61)
Interest income 6 7 38 14
Foreign currency gains (losses), net 4 (2) 3 (2)
Other nonoperating, net (26) (1) (24) (1)
------------ ------------ ------------- -------------
Income before income taxes, minority
interests and change in accounting method 146 409 295 747
Provision for income taxes (53) (153) (113) (281)
Minority interest in net income
of subsidiaries (10) (13) (18) (20)
------------ ------------ ------------- -------------
Income before accounting change 83 243 164 446
Cumulative effect of change in
accounting method, net - - (19) -
------------ ------------ ------------- -------------
Net income $ 83 $ 243 $ 145 $ 446
============ ============ ============= =============
Basic income per share:
Before change in accounting method $ 0.19 $ 0.55 $ 0.37 $ 1.02
Change in accounting method - - (0.04) -
------------ ------------ ------------- -------------
Net Income $ 0.19 $ 0.55 $ 0.33 $ 1.02
============ ============ ============= =============
Diluted income per share:
Before change in accounting method $ 0.19 $ 0.55 $ 0.37 $ 1.01
Change in accounting method - - (0.04) -
------------ ------------ ------------- -------------
Net Income $ 0.19 $ 0.55 $ 0.33 $ 1.01
============ ============ ============= =============
Basic average common shares outstanding 440 438 440 438
Diluted average common shares outstanding 444 443 443 443
Prior year restated for the acquisition of Dresser Industries, Inc., which has
been accounted for as a pooling of interests.
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