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Baker Hughes Good Quarter, Bad Forecast (BHI, HAL, WFT, SLB)

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By Douglas A. McIntyre Updated Published
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Money_stack_pic_4That Baker Hughes Inc. (NYSE:BHI) this morning reported better-than-expected results for its fourth quarter shouldn’t really be a surprise. When Halliburton Company (NYSE:HAL) and Weatherford International Limited (NYSE:WFT) reported results, the market got its good-news surprise package for the week.

Still, Baker Hughes beat analysts’ expectations on EPS and revenue forboth the quarter and the full year. But now everyone is waiting to hearabout the future. And that’s where the bad news is.

The company’s chairman, president, and CEO said that "the outlook for2009 has continued to deteriorate." Rig counts in the US are off 25%from their peak, and the company’s customers continue to pull back onspending in an already over-supplied gas market.

Baker Hughes has already announced a layoff of about 1,500 employees,and in this it follows industry leader Schlumberger Limited (NYSE:SLB).The oilfield services industry is digging in until the overall economyturns around. No one knows when that will be, but in the oilfieldservices business, expectations seem to be that change will come laterrather than sooner.

Paul Ausick
January 28, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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