Baker Hughes Profits Decline 81% - TheStreet

Baker Hughes Profits Decline 81%

Baker Hughes said fourth-quarter earnings fell 81% to $84 million, or 27 cents a share, but it exceeded analysts' forecasts when exceptional items are excluded.
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HOUSTON (

TheStreet

) --

Baker Hughes

(BHI)

said fourth-quarter earnings fell 81% to $84 million, or 27 cents a share, but it exceeded analysts' forecasts when exceptional items are excluded.

The period included pretax expenses of $74 million, or 16 cents a share, associated with reorganization, severance and acquisition-related costs, and an increase to the allowance for doubtful accounts.

Baker Hughes, the oil-service company, said revenue fell 24% to $2.43 billion from $3.19 billion.

Analysts expected Baker Hughes to post earnings of 35 cents a share, excluding items.

Baker Hughes said it expects international activity to improve in 2010 "driven by the global economy's increasing demand for oil and natural gas. However, margins will remain under pressure as the impact of price discounts negotiated in 2009 are reflected in 2010 results."

-- Reported by Joseph Woelfel in New York.

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