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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 7, 2001
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 7, 2001 registrant issued a press release entitled "Halliburton
Comments on Asbestos Judgments" to provide background on the recent
announcements of three adverse asbestos litigation results and to put them into
context.
The following summarizes that press release:
Registrant's strategy in managing asbestos cases is to achieve settlement
of valid claims for reasonable amounts. When registrant believes that
plaintiffs' settlement demands are not reasonable, it takes the cases to trial.
The verdicts and judgements recently announced by registrant are significantly
outside its past experience.
As previously announced by registrant, it believes that the $65 million
dollar judgment in the district court in Orange, Texas is based on serious error
during the trial and that the trial evidence does not support the judgment.
Separately, the same district court judge rendered the $35.7 million of
judgments against registrant's subsidiary, Dresser Industries, Inc., based on
settlement agreements to which Dresser was not a party and did not authorize.
Registrant believes both of these actions are contrary to applicable law and
will appeal both of them. If the appeals are not successful, registrant has
substantial insurance that it expects will pay most of these judgments.
In the Baltimore case, registrant believes that it has a good basis for
appeal of the verdict if judgment on the verdict is rendered. However,
registrant cannot be certain of the result of such appeal. In any event, if
registrant's appeals do not succeed, registrant has substantial insurance that
it expects will pay most of any verdict amount.
During the coming weeks and months registrant expects Dresser and Kellogg
Brown & Root will be involved in a number of other asbestos claim trials in
several states. Registrant cannot predict the outcome of such trials but is
confident in its strategy. Registrant is managing its asbestos claims
aggressively and will continue its current claim strategy and seek to minimize
any adverse financial impact on it to the maximum extent possible. Registrant's
businesses are strong and healthy and its financial disclosure is accurate and
complete.
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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 7, 2001.
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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: December 10, 2001 By: /s/ Susan S. Keith
------------------------------------
Susan S. Keith
Vice President and Secretary
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EXHIBIT INDEX
Exhibit Description
20 Press Release Dated December 7, 2001
Incorporated by Reference
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FOR IMMEDIATE RELEASE: December 7, 2001
HALLIBURTON COMMENTS ON ASBESTOS JUDGMENTS
DALLAS, Texas--This week Halliburton Company announced three adverse asbestos
litigation results. Those announcements are set forth in full at the end of this
press release. We would like to provide some background for those announcements
to put them into context.
Our strategy in managing asbestos cases is to achieve settlement of valid claims
for reasonable amounts. When we believe that settlement demands by plaintiffs
are not reasonable we go to trial. This strategy has resulted in resolution of
over 194,000 asbestos claims during the last 25 years for reasonable aggregate
amounts. Our Form 10-Q quarterly report for the period ending on September 30,
2001 contains more information about our asbestos claims and the results of our
claims management.
The verdicts and judgments we reported this week were significantly outside our
past experience. During the last several months Dresser and Kellogg Brown & Root
have achieved favorable results in a number of other asbestos lawsuits where
Dresser and Kellogg Brown & Root have been found to have no liability or
relatively small amounts of liability. We believe that our management of
asbestos claims is reasonable and effective and, over time, produces better
results than the strategies followed by some other asbestos defendants.
As we previously announced, we believe that the $65 million dollar judgment in
the district court in Orange, Texas is based on serious error during the trial
and that the trial evidence does not support the judgment. Separately the same
district court judge rendered the $35.7 million of judgments against our
subsidiary Dresser Industries, Inc. based on settlement agreements to which
Dresser was not a party and did not authorize. We believe that both of these
actions are contrary to applicable law and we will appeal both of them. If our
appeals do not succeed, we have substantial insurance that we expect will pay
most of these judgments.
Our previous trial experience in the Baltimore court has been substantially
better. We have a good basis for an appeal of this verdict if judgment on the
verdict is rendered, although we cannot be certain of the result of such appeal.
In any event, if our appeals do not succeed we have substantial insurance that
we expect will pay most of any verdict amount.
During the coming weeks and months we expect Dresser and Kellogg Brown & Root
will be involved in a number of other asbestos claim trials in several states.
We cannot predict the outcome in these trials but we are confident of our
strategy. We will continue to provide timely material information about the
results of those trials. We are managing asbestos claims aggressively. We will
continue our current claim strategy and seek to minimize any adverse financial
impact on our company to the maximum extent possible. Our businesses are strong
and healthy and our financial disclosure is accurate and complete.
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Halliburton management will hold a telephone conference on Monday, December 10,
2001 at 7:00 am (CST) to discuss these matters.
If you plan to participate in the teleconference, please telephone (913)
981-5583 ten to fifteen minutes prior to starting time and refer to confirmation
code 471264.
The following is a restatement of the information in the two Form 8-K filings we
made earlier this week.
December 4, 2001
Halliburton Company announced that on November 29, 2001, a Texas district court
in Orange, Texas entered a judgment against its subsidiary, Dresser Industries,
Inc., on a $65 million jury verdict rendered in September 2001 in favor of five
plaintiffs following a trial of several weeks. Dresser believes that the trial
court committed numerous errors, including the application of Alabama law and
its evidentiary rulings during the trial. Additionally, the trial court denied
Dresser the right to present evidence that the alleged illnesses of the
plaintiffs were not caused by Dresser products, but instead could have been
caused by the products of other companies which had previously settled with the
plaintiffs. Dresser intends to appeal this judgement and believes that the trial
evidence did not support the verdict and that its legal defenses will result in
judgment on appeal in Dresser's favor.
The same district court also entered three additional judgments against Dresser
in the aggregate amount of $35.7 million in favor of 100 other asbestos
plaintiffs. These judgments related to an alleged breach of purported settlement
agreements signed earlier this year by a New Orleans lawyer hired by
Harbison-Walker Refractories Company, which had been defending Dresser pursuant
to the agreement by which Harbison-Walker was spun-off by Dresser in 1992. These
settlement agreements purportedly bind Harbison-Walker Refractories Company as
the obligated party, not Dresser. Dresser intends to appeal these three
judgements on the grounds that it was not a party to the settlement agreements
and it did not authorize anyone to settle on its behalf. Dresser believes that
these judgments are contrary to applicable law and that its appeal will be
successful.
December 7, 2001
Halliburton Company announces that on December 5, 2001, a jury in Baltimore,
Maryland returned verdicts against its subsidiary, Dresser Industries, Inc., and
other defendants following a trial of several weeks involving asbestos claims.
Each of five plaintiffs alleged exposure to Harbison-Walker Refractories
products. Dresser's portion of the verdicts totals $30 million. Dresser believes
that the trial court committed numerous errors, and that the trial evidence did
not support the verdicts. Dresser intends to challenge the verdicts by post
trial motion and, if those motions are not successful, to pursue an appeal
aggressively.
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 and Engineering and Construction Group business segments. The
company's World Wide Web site can be accessed at http://www.halliburton.com.
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# # #
Editor's 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, 2001 for a more complete discussion of
such risk factors.
Contact
Wendy Hall
wendy.hall@halliburton.com
Halliburton Company
Public Relations
713.676.5227
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