Baker Hughes Posts Steep Drop In 3Q Profit

HOUSTON (AP) — Baker Hughes Inc. said Wednesday its third-quarter profit fell 87 percent on continuing price decreases, discounting and extra costs in a company reorganization.

Net income of $55 million, or 18 cents per share, compared with $429 million, or $1.39 per share, in the same quarter last year.

The latest quarter's results included pretax expenses of $38 million, or 8 cents per share, related to reorganization, severance and acquisition costs and an increase to the Houston company's allowance for bad debts.

Revenue slid 26 percent to $2.23 billion from $3.01 billion.

Analysts surveyed by Thomson Reuters expected earnings of 35 cents per share on revenue of $2.26 billion.

The price of crude oil has fallen from its 2009 high of $82 a barrel last month on investor doubts about the strength of the U.S. economy. Some analysts say the oil price could fall further if a monthly U.S. unemployment report on Friday confirms the number of jobless continues to swell.