HOUSTON (AP) — Oilfield services company Baker Hughes' fourth-quarter net income fell 32 percent, dragged down by a hefty charge.
The Houston company said Wednesday that its quarterly performance was also hurt by a sharp decline in North American activity toward year's end and unfavorable pricing conditions in the pressure pumping market.
Nonetheless, its adjusted results beat analysts' estimates and revenue topped Wall Street's view.
For the three months ended Dec. 31, Baker Hughes earned $214 million, or 49 cents per share. A year earlier it earned $314 million, or 72 cents per share.
Removing a charge of 14 cents per share for bad debt provisions in Latin America, earnings from continuing operations were 62 cents per share. Analysts surveyed by FactSet expected earnings of 61 cents per share.
Revenue dipped 2 percent to $5.22 billion from $5.3 billion, but topped Wall Street's forecast of $5.21 billion.
Baker Hughes Inc. said it earned $1.31 billion, or $2.97 per share, for the full year. That compares with $1.74 billion, or $3.97 per share, in the prior year. Annual revenue climbed 8 percent to $20.93 billion from $19.43 billion.
Baker Hughes said it plans to lower its capital expenditures by about 30 percent this year. Capital expenditures were $2.87 billion in 2012, implying about $2 billion in capital expenditures for 2013.
The company's stock shed 5 cents to $44.80 in premarket trading.