(By Balaseshan) Baker Hughes Inc. (NYSE: BHI), a supplier of oilfield services, reported a 60.6% drop in quarterly earnings due to the imbalance in the North American Pressure Pumping business. Results missed Street's expectations, sending its shares down 4.36% in premarket.
Earnings for the third quarter were $279 million or $0.63 per share, lower than last year's $709 million or $1.62 per share. Adjusted EPS fell to $0.73 from $1.18.
Revenue increased 3% to $5.23 billion, and remained relatively flat compared to $5.21 billion for the second quarter of 2012.
Analysts, on average, polled by Thomson Reuters had expected earnings of $0.84 per share on revenue of $5.44 billion for the third quarter.
Revenue from North America rose 0.8% to $2.74 billion, while Latin America revenue increased 2.3% to $583 million. Revenue from Europe/Africa/Russia Caspian rose 0.3% to $866 million, while Middle East/Asia Pacific revenue grew 18.7% to $844 million.
The company said activity was less than planned in several key geomarkets, resulting in an unfavorable mix. The clearest example is Canada, where the seasonal return of activity was nearly 30% less than this time last year.
Internationally, the collective rig count in Brazil, Colombia, and Norway was down 17% compared to the last quarter, and these are all meaningful markets for Baker Hughes.
"In the fourth quarter, activity levels in our International segments are projected to rebound. Looking ahead, we are well positioned in growing and emerging markets. We will continue investing in technologies, product lines and regions that strengthen the core of our business and supply chain," said Martin Craighead, Baker Hughes' President and Chief Executive Officer.
BHI closed Thursday's regular session up 0.80% at $47.10. The stock has been trading between $37.08 and $61.90 for the past 52 weeks.