(By Balaseshan) Baker Hughes Inc. (NYSE: BHI), a supplier of oilfield services, reported a 31.8% drop in quarterly earnings due to the imbalance in the North American Pressure Pumping business. Earnings missed Street's expectations.
Earnings from continuing operations for the fourth quarter were $211 million or $0.48 per share, lower than last year's $331 million or $0.76 per share. Adjusted EPS from continuing operations fell to $0.48 from $1.20.
Revenue declined 1% to $5.22 billion, and remained relatively flat compared to $5.23 billion for the third quarter of 2012.
Analysts, on average, polled by Thomson Reuters had expected earnings of $0.61 per share on revenue of $5.20 billion for the fourth quarter.
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Revenue from North America fell 9.6% to $2.56 billion, while Latin America revenue increased 6.1% to $639 million. Revenue from Europe/Africa/Russia Caspian rose 4.4% to $950 million, while Middle East/Asia Pacific revenue grew 15.4% to $882 million.
"Our fourth quarter results reflect the challenges faced by the industry as North American activity declined sharply towards the end of the year, and we continue to deal with unfavorable pricing conditions in the pressure pumping market," said Martin Craighead, Baker Hughes' President and Chief Executive Officer.
The company said it experienced a decline in North America revenues and margins this quarter, which were almost entirely offset by gains in its international business, driven by record revenues in all of its international segments during the quarter.
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BHI closed Tuesday's regular session up 1.24% at $44.85. The stock has been trading between $37.08 and $52.93 for the past 52 weeks.