Halliburton ( HAL) reported second-quarter earnings fell to $274 million, or 30 cents a share, excluding a charge for employee separation costs, as the company said it was impacted by the "steep continued downturn" in drilling activity in North America.

Analysts surveyed by Thomson Reuters expected the oilfield services company to report earnings of 27 cents a share.

Reported net income in the period fell 48% to $262 million, or 29 cents a share, on revenue of $3.5 billion. Analysts forecasted revenue of $3.43 billion. Halliburton said revenue for most of its product service lines declined.

A year earlier, Halliburton reported net income of $504 million, or 55 cents a share, on revenue of $3.9 billion.

"Weak global demand and volatility in the commodity markets continue to weigh on the oilfield services industry. The worldwide average rig count decreased 25% sequentially, further weakening industry fundamentals during the second quarter," said Dave Lesar, chairman, president and CEO, in a statement.