Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Baker Hughes Incorporated    BHI

Delayed Quote. Delayed  - 09/23 10:00:35 pm
49.24 USD   -1.81%
09/24 BAKER HUGHES IN : Inc. (BHI) Shares Bought by Retirement Systems of ..
09/23 BAKER HUGHES IN : US rig count up 5 this week to 511
09/23 PdVSA awarded US$3.23bn contract to boost Venezuela oil productio..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Baker Hughes Cuts 1Q Outlook As Markets Change

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/21/2012 | 04:00pm CEST

--Baker Hughes says transition to oil drilling increases costs, weakens prices for its services

--Shares down 3.91%; shares of Halliburton, Nabors Industries also fall

--Baker Hughes reducing capital expenses to adapt to market changes

 
   By Angel Gonzalez 
   Of  
 

Baker Hughes Inc. (>> Baker Hughes Incorporated) expects its first-quarter operating profit to decline from the prior quarter as rapidly changing market conditions have hurt its pressure-pumping product line in North America.

As with other oilfield-services companies, Baker Hughes is facing a difficult adjustment as companies such as Chesapeake Energy Corp. (CHK) retreat from natural gas drilling amid a 10-year low in the commodity's price. The drilling-services provider on Wednesday said the continued shift of U.S. rig activity to oil and liquids-rich basins has decreased fleet utilization, lowered pricing and increased personnel and logistics costs. The market shift has also contributed to shortages of, and higher costs for, critical raw materials, such as gel.

Shares of Baker Hughes recently traded down 3.8% at around $46. The effect of the company's outlook was also felt in the stock of other oilfield-service providers with large exposure to North America. For example, shares of Halliburton Co. (HAL) were down 1.8% at $34.14, and those of Nabors Industries Ltd. (>> Nabors Industries Ltd.) were down 4% at $19.26.

However, many of Baker Hughes's issues are unique to the company, said analysts with Simmons & Co. If Halliburton's stock "gets slammed today, buy it," the analysts said.

Baker Hughes said it now expects first-quarter North America operating profit before tax margin of between 13.2% and 14.2%, compared with 18.7% in the fourth quarter.

For international operations, the company predicts an operating profit before tax margin of 12.2% to 13.2%, compared with 15.6% in the prior quarter, due in part to seasonality of product sales, weather, geographic mix and project delays in Latin America.

The company said it is reviewing its budgets and expects to adjust 2012 capital expenditures for the pressure-pumping product line to align with current market conditions. Simmons analysts said Baker Hughes would eventually succeed in addressing the challenge. "This management team has done it before," the analysts said.

In January, Baker Hughes reported its fourth-quarter earnings fell 6.3%, despite a 22% revenue jump, as it stumbled in serving oil and gas producers racing to drill in increasingly prolific U.S. shale oil fields.

-By Angel Gonzalez, Dow Jones Newswires; 713-547-9214; angel.gonzalez@dowjones.com

--Melodie Warner contributed to this article.

Stocks mentioned in the article : Baker Hughes Incorporated, Nabors Industries Ltd.
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BAKER HUGHES INCORPORATED
09/24 BAKER HUGHES INCORPORATED : Inc. (BHI) Shares Bought by Retirement Systems of Al..
09/23 BAKER HUGHES INCORPORATED : US rig count up 5 this week to 511
09/23 PdVSA awarded US$3.23bn contract to boost Venezuela oil production
09/23 BAKER HUGHES INCORPORATED : Assigned Patent
09/23 BAKER HUGHES INCORPORATED : USD/CAD in Focus Ahead of Canada CPI data as Oil Pri..
09/22 BAKER HUGHES INCORPORATED : Announces Date for Third Quarter 2016 Earnings Relea..
09/21DJSchlumberger Wins Part of $3.2 Billion Drilling Project in Venezuela
09/20 BAKER HUGHES INCORPORATED : U.S. Rig Count Ticks Down as Natural Gas Drilling Dr..
09/16 BAKER HUGHES INCORPORATED : Crude Oil Rally Fizzles Ahead Of Upcoming OPEC Meeti..
09/16 BAKER HUGHES INCORPORATED : Oil rig count up seven this week
More news
Sector news : Oil Related Services and Equipment - NEC
09/23DJRITE AID : Business Watch -- WSJ
09/22DJSCHLUMBERGER : Wins Part of $3.2 Billion Drilling Project in Venezuela
09/22DJSCHLUMBERGER : Correction to the Schlumberger story
09/21DJSchlumberger Wins Part of $3.2 Billion Drilling Project in Venezuela
09/21DJSCHLUMBERGER : Wins Part of $3.2 Billion Drilling Project in Venezuela
More sector news : Oil Related Services and Equipment - NEC
News from SeekingAlpha
09/25 Why Does Saudi Arabia Wish Me Poverty?
09/25 An Oil Production Cut By OPEC Looks More Likely Now
09/21 Norway oil workers go on strike, helping send crude prices higher
09/19 An Oil Surprise That Was Not Well Received
09/12 Oil Stocks Fell... Hard
Advertisement
Financials ($)
Sales 2016 9 944 M
EBIT 2016 -859 M
Net income 2016 -2 230 M
Finance 2016 27,8 M
Yield 2016 1,40%
P/E ratio 2016 -
P/E ratio 2017
EV / Sales 2016 2,12x
EV / Sales 2017 1,93x
Capitalization 21 070 M
More Financials
Chart BAKER HUGHES INCORPORATED
Duration : Period :
Baker Hughes Incorporated Technical Analysis Chart | BHI | US0572241075 | 4-Traders
Full-screen chart
Technical analysis trends BAKER HUGHES INCO...
Short TermMid-TermLong Term
TrendsBearishBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 34
Average target price 52,3 $
Spread / Average Target 6,2%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Martin S. Craighead Chairman & Chief Executive Officer
Belgacem Chariag President-Global Operations
Kimberly A. Ross Chief Financial Officer & Senior Vice President
Archana Deskus Chief Information Officer & Vice President
Larry D. Brady Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BAKER HUGHES INCORPORA..6.70%21 070
SCHLUMBERGER LIMITED.8.85%105 581
HALLIBURTON COMPANY22.91%36 029
NATIONAL-OILWELL VARCO..1.19%12 798
TECHNIP12.58%7 071
FMC TECHNOLOGIES, INC.-5.38%6 193
More Results