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Despite war revenues, Halliburton fails to earn a profit
23 July 2004

WASHINGTON, July 23 (HalliburtonWatch.org) -- Halliburton's revenue from the Iraq war totalled $8 billion in the last 16 months, but the company failed to earn a profit for the last 9 consecutive months. Large expenses incurred from the settlement of asbestos lawsuits, as well as cost overruns incurred from a Brazilian construction project, continue to beleaguer the company. It reported a net loss of $663 million, or $1.51 per share, for the April 1 to June 30 reporting period. On average, Wall Street analysts estimated Halliburton would earn a profit of 33 cents per share, but the company missed that estimate by a wide margin and actually failed to earn a profit. The loss includes a charge of $609 million, or $1.39 per share, incurred because of lower-than-expected insurance recoveries to help finance the settlement of asbestos lawsuits. Halliburton recently settled 400,000 claims by individuals injured by asbestos manufactured by the company and its subsidiaries. It also incurred a $200 million loss, or 46 cents per share, for problems related to the troubled Barracuda-Caratinga deepwater oil project in Brazil. Halliburton's KBR subsidiary is converting two supertankers in Brazil -- one named Barracuda, the other named Caratinga -- into production, storage and offloading vessels for deepwater oil fields. The project was awarded to KBR by Brazilian company Petroleo Brasileiro SA, also known as Petrobras.

Revenue rose by 38 percent to $5.0 billion for the April 1 to June 30 period. Iraq-related work contributed $1.7 billion in revenue, but added only $23 million to operating income.

Halliburton also named Andrew Lane as president and chief executive officer of KBR. He succeeds Randy Harl who will become chairman. Lane was senior vice president of Halliburton Energy Services Group's regional organization and previously was president and CEO of Landmark Graphics.

More Information

Reuters: Halliburton Posts Loss on Charges