<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
January 7, 1999
Date of Report
(Date of earliest event reported)
SMITH INTERNATIONAL, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-8514 95-3822631
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
16740 Hardy Street
Houston, Texas
(Address of principal executive offices)
77032
(Zip Code)
(281) 443-3370
(Registrant's telephone number, including area code)
<PAGE> 2
ITEM 5: OTHER EVENTS
A copy of the press release announcing the Company's outlook for the
fourth quarter of 1998 is filed as Exhibit 99.1 and is hereby incorporated
herein by reference.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SMITH INTERNATIONAL, INC.
/s/ NEAL S. SUTTON
------------------------------------
By: Neal S. Sutton
Senior Vice President - Administration,
General Counsel and Secretary
Date: January 7, 1999
<PAGE> 4
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
99.1 Press Release
<PAGE> 1
EXHIBIT 99.1
PRESS RELEASE
- --------------------------------------------------------------------------------
SMITH INTERNATIONAL, INC.
P.O. BOX 60068
HOUSTON, TX 77205-0068
WEBSITE ADDRESS: smith.com
FOR RELEASE
THURSDAY, JANUARY 7, 1999
CONTACT: JOHN J. KENNEDY
CHIEF FINANCIAL OFFICER
(281) 443-3370
SMITH INTERNATIONAL, INC. COMMENTS
ON FOURTH QUARTER OUTLOOK
HOUSTON, Texas (January 7, 1999)... Smith International, Inc. (NYSE, PCX:
SII) today announced that several factors are expected to impact its results for
the quarter ended December 31, 1998 resulting in earnings which will be lower
than current analysts' earnings estimates. The Company expects to incur a $42
million pre-tax charge ($28 million, or $0.57 per diluted share, after-tax) in
the quarter which includes costs for additional restructuring efforts including
severance, operation reductions and asset write-downs associated with a
deterioration in certain markets for the Company's products and services.
Reduced customer activity and spending levels in light of the continued weakness
in oil prices are effecting fourth quarter revenues. The Company anticipates
revenues for the fourth quarter will be approximately 13 percent below revenues
reported in the third quarter of 1998. While results for the fourth quarter have
not yet been consolidated or reviewed, the Company believes fourth quarter
earnings per share, excluding the impact of the charge, will be in the $0.25 to
$0.27 range. The Company's financial results for the quarter and fiscal year
ended December 31, 1998 are expected to be announced during the week of February
1, 1999.
<PAGE> 2
Smith International, Inc. is a leading worldwide supplier of premium
products and services to the oil and gas exploration and production industry
through its five principal business units - M-I Fluids, M-I SWACO, Smith Bits,
Smith Drilling & Completions and Wilson Supply.
Certain comments contained in this news release concerning the
business outlook and anticipated financial results of the Company constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to the safe harbor created by that
Act. Whenever possible, the Company has identified these "forward-looking
statements" by words such as "expects", "believes", "anticipates" and similar
phrases. The forward-looking statements are based upon management's expectations
and beliefs and, although these statements are based upon reasonable
assumptions, there can be no assurances that the financial results or components
will be as estimated. The Company assumes no obligation to update publicly any
forward-looking statements whether as a result of new information, future events
or otherwise. Additionally, for a discussion of certain risk factors which could
impact the reported results, review the Company's Annual Report on Form 10-K for
the year ended December 31, 1997 as filed with the Securities and Exchange
Commission.
