- -------------------------------------------------------------------------------
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
--- OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
--- OF THE SECURITIES EXCHANGE ACT OF 1934
-----------------------------
Commission file number 1-9397
-----------------------------
BAKER HUGHES INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 76-0207995
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
3900 Essex Lane, Houston, Texas 77027
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (713) 439-8600
-----------------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at April 29, 1995
----- -----------------------------
Common Stock, $1.00 par value per share 141,104,000 shares
- -------------------------------------------------------------------------------
<PAGE>
BAKER HUGHES INCORPORATED
INDEX
Page
No.
----
Part I - Financial Information:
Consolidated Condensed Statements of Operations - Three
Months and Six Months ended March 31, 1995 and 1994.............. 2
Consolidated Condensed Statements of Financial
Position - March 31, 1995 and September 30, 1994................. 3
Consolidated Condensed Statements of Cash Flows - Six
Months ended March 31, 1995 and 1994............................. 5
Notes to Consolidated Condensed Financial Statements.................. 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................. 7
Part II - Other Information............................................... 13
-1-
<PAGE>
PART I. FINANCIAL INFORMATION
BAKER HUGHES INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
March 31, March 31,
1995 1994 1995 1994
REVENUES: -------------------- --------------------
Sales.......................... $ 447,302 $ 453,305 $ 859,209 $ 886,787
Services and rentals........... 205,307 196,711 400,317 387,791
--------- --------- --------- ---------
Total revenues............. 652,609 650,016 1,259,526 1,274,578
COSTS AND EXPENSES: --------- --------- --------- ---------
Cost of sales.................. 258,533 269,896 500,349 521,827
Cost of services and rentals... 99,880 93,765 194,939 190,645
Research and engineering....... 20,760 23,995 40,847 47,420
Marketing and field service.... 149,132 147,613 294,081 295,057
General and administrative..... 57,288 51,605 101,604 104,920
Amortization of goodwill and
other intangibles............ 7,463 7,504 15,340 15,465
--------- --------- --------- ---------
Total costs and expenses... 593,056 594,378 1,147,160 1,175,334
--------- --------- --------- ---------
Operating income.................. 59,553 55,638 112,366 99,244
Interest expense.................. (13,701) (16,588) (25,180) (31,779)
Interest income................... 1,268 1,102 2,075 1,788
--------- --------- --------- ---------
Income before income taxes........ 47,120 40,152 89,261 69,253
Income taxes...................... (19,120) (16,864) (37,030) (29,086)
--------- --------- --------- ---------
Income before cumulative effect
of accounting changes........... 28,000 23,288 52,231 40,167
--------- ---------
Cumulative effect of accounting
changes:
Income taxes................... 25,455
Postretirement benefits other
than pensions (net of $37,488
million income tax benefit).. (69,620)
Postemployment benefits (net of
$7,861 million income tax
benefit)..................... (14,598)
--------- ---------
Accounting changes - net... (14,598) (44,165)
--------- --------- --------- ---------
Net income (loss)................. $ 28,000 $ 23,288 $ 37,633 $ (3,998)
Per share of Common Stock: ========= ========= ========= =========
Income before cumulative effect
of accounting changes........ $ .18 $ .14 $ .33 $ .24
Cumulative effect of accounting
changes...................... (.10) (.32)
--------- --------- --------- ---------
Net income (loss).............. $ .18 $ .14 $ .23 $ (.08)
========= ========= ========= =========
Cash dividends per share of common
stock........................... $ .115 $ .115 $ .23 $ .23
========= ========= ========= =========
See accompanying notes to consolidated condensed financial statements.
-2-
<PAGE>
BAKER HUGHES INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
(In thousands)
ASSETS
March 31, September 30,
1995 1994
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents...................... $ 128,846 $ 69,179
---------- ----------
Receivables - net.............................. 643,822 612,414
---------- ----------
Inventories:
Finished goods............................. 529,491 508,198
Work in process............................ 52,459 53,644
Raw materials.............................. 78,164 81,204
---------- ----------
Total inventories...................... 660,114 643,046
---------- ----------
Deferred income taxes.......................... 47,729 45,959
---------- ----------
Other current assets........................... 35,160 29,394
---------- ----------
Total current assets................... 1,515,671 1,399,992
---------- ----------
PROPERTY - NET.................................... 556,189 560,084
---------- ----------
OTHER ASSETS:
Property held for disposal..................... 70,368 73,496
Investments.................................... 93,213 89,601
Other assets................................... 85,766 80,054
Excess costs arising from acquisitions - net... 783,513 796,455
---------- ----------
Total other assets..................... 1,032,860 1,039,606
---------- ----------
Total.............................. $ 3,104,720 $ 2,999,682
========== ==========
See accompanying notes to consolidated condensed financial statements.
-3-
<PAGE>
BAKER HUGHES INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
(In thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, September 30,
1995 1994
---------- ----------
CURRENT LIABILITIES:
Accounts payable............................... $ 234,572 $ 253,616
Short-term borrowings and current
portion of long-term debt.................... 1,549 15,299
Accrued employee compensation and benefits..... 114,931 113,304
Income taxes................................... 15,086 29,729
Taxes other than income........................ 17,419 20,608
Accrued insurance.............................. 24,803 26,492
Accrued interest............................... 18,141 10,676
Other accrued liabilities...................... 70,062 74,847
---------- ----------
Total current liabilities.............. 496,563 544,571
---------- ----------
LONG-TERM DEBT.................................... 760,167 637,972
---------- ----------
DEFERRED INCOME TAXES............................. 67,915 53,841
---------- ----------
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS....... 97,102 95,951
---------- ----------
POSTEMPLOYMENT BENEFITS........................... 25,530
----------
OTHER LONG-TERM LIABILITIES....................... 30,310 28,875
---------- ----------
STOCKHOLDERS' EQUITY:
Preferred stock................................ 4,000 4,000
Common stock................................... 141,087 140,889
Capital in excess of par value................. 1,476,743 1,474,013
Retained earnings.............................. 124,475 125,276
Cumulative foreign currency translation
adjustment................................... (117,549) (102,915)
Unrealized loss on securities available for sale (1,623) (2,791)
---------- ----------
Total stockholders' equity............. 1,627,133 1,638,472
---------- ----------
Total.............................. $ 3,104,720 $ 2,999,682
========== ==========
See accompanying notes to consolidated condensed financial statements.
-4-
<PAGE>
BAKER HUGHES INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended
March 31,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES: -------- --------
Net income (loss).................................. $ 37,633 $ (3,998)
Adjustments to reconcile net income (loss) to net
cash flows from operating activities:
Depreciation and amortization of:
Property....................................... 57,443 65,387
Other assets and debt discount................. 20,542 23,513
Gain on disposal of assets....................... (1,439) (5,014)
Gain on disposition of EM&C...................... (8,550)
Foreign currency translation loss - net.......... 70 9
Cumulative effect of accounting changes.......... 14,598 44,165
Change in receivables............................ (37,505) 17,712
Change in inventories............................ (19,180) (58,736)
Change in accounts payable....................... (13,313) (23,310)
Changes in other assets and liabilities.......... (25,650) (13,367)
-------- --------
Net cash flows from operating activities........... 33,199 37,811
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions............................... (58,524) (56,613)
Proceeds from disposal of assets................. 20,154 16,132
Proceeds from disposition of businesses.......... 128,389
-------- --------
Net cash flows from investing activities........... (38,370) 87,908
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) from commercial paper
and revolving credit facilities................ 10,539 (81,540)
Proceeds from exercised debenture purchase
warrants....................................... 93,000
Proceeds from exercise of stock options
and stock purchase grants...................... 1,272 62
Dividends........................................ (38,434) (38,302)
-------- --------
Net cash flows from financing activities........... 66,377 (119,780)
-------- --------
Effect of exchange rate changes on cash............ (1,539) 584
-------- --------
Increase in cash and cash equivalents.............. 59,667 6,523
Cash and cash equivalents, beginning of
period........................................... 69,179 6,992
-------- --------
Cash and cash equivalents, end of period........... $ 128,846 $ 13,515
======== ========
Income taxes paid.................................. $ 30,433 $ 23,020
Interest paid...................................... $ 15,408 $ 24,402
See accompanying notes to consolidated condensed financial statements.
-5-
<PAGE>
BAKER HUGHES INCORPORATED
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1. General
In the opinion of the Company, the unaudited consolidated condensed
financial statements include all adjustments consisting of normal recurring
accruals necessary for a fair presentation of the Company's consolidated
financial position as of March 31, 1995 and its consolidated results of
operations and cash flows for each of the three and six month periods ended
March 31, 1995 and 1994. Although the Company believes that the disclosures in
these financial statements are adequate to make the information presented not
misleading, certain information and footnote disclosures normally included in
annual financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the rules and
regulations of the Securities and Exchange Commission (See the Company's Annual
Report on Form 10-K for the year ended September 30, 1994 for the most recent
annual financial statements prepared in accordance with generally accepted
accounting principles). Certain balances on the Consolidated Statement of
Financial Position at September 30, 1994 have been reclassified to conform to
the March 31, 1995 presentation. The results of operations for the three and
six months ended March 31, 1995 are not necessarily indicative of the results
to be expected for the full year.
Note 2. Income Per Common Share
Net income per common share is based on the weighted average number of
shares outstanding during the respective periods (three months ended
March 31, 1995 and 1994, 141,032,000 and 140,443,000, respectively; six months
ended March 31, 1995 and 1994, 141,005,000 and 140,442,000, respectively) and
excludes the negligible dilutive effect of shares issuable in connection with
employee stock plans. Net income per common share has been adjusted for
dividends on preferred stock of $3.0 million and $6.0 million for the three
months and six months ended March 31, 1995 and 1994.
Note 3. Postemployment Benefits
The Company provides certain postemployment benefits consisting primarily
of long-term disability income benefits, which are fully funded, and long-term
disability medical benefits, which are unfunded. The Company adopted Statement
of Financial Accounting Standards ("SFAS") No. 112, "Employers' Accounting for
Postemployment Benefits," effective October 1, 1994. The accounting standard
requires the accrual method of accounting rather than cash basis accounting,
which was previously used by the Company. The Company recognized a charge to
income of $14.6 million ($.10 per share), net of an income tax benefit of $7.9
million, as the cumulative effect of the change in accounting principle.
Annual expense under SFAS No. 112 for 1995 is expected to be approximately $2.5
million, which is not significantly different from the actual cash payments.
-6-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
BUSINESS ENVIRONMENT
Oilfield Operations companies manufacture, sell and provide services used
in the drilling, completion and maintenance of oil and gas wells. The business
environment of the Company is significantly affected by worldwide expenditures
of the petroleum industry. Important factors establishing the levels of these
expenditures include world economic conditions, crude oil and natural gas
supply and demand balances, the legislative environment in the United States
and other major countries, and developments in the Middle East and other major
petroleum producing regions.
ACTIVITY INDICATORS
Crude oil and natural gas prices are a major determinant of exploration and
development expenditures. (The amounts in the table below are quarter
averages.)
Three Months Ended Six Months Ended
March 31, March 31,
1995 1994 1995 1994
---------------------------------------------------------------------------
WTI ($/Bbl) 18.35 14.79 18.00 15.56
U.S. Spot Natural Gas ($/mcf) 1.34 2.19 1.42 2.11
Oil prices strengthened in the second quarter and first six months of 1995
rising $3.56/Bbl or 24.1% and $2.44/Bbl or 15.7% compared to the same periods a
year ago. The Company expects prices to trend upwards in 1995 and 1996 while
remaining susceptible to short-term price fluctuations. U.S. natural gas
prices were lower, decreasing 38.8% for the quarter and 32.7% for the six
months. Higher natural gas production and a mild winter were the major causes
for the price decline. Prices are expected to strengthen slightly in the
remainder of 1995 but will still be lower than prices in 1994.
A more direct indicator of expenditures and drilling activity is the Baker
Hughes rotary rig count. Workover activity, as measured by the U.S. workover
rig count, is also an indicator of expenditure activity. (The amounts in the
table below are quarter averages.)
Three Months Ended Six Months Ended
March 31, March 31,
1995 1994 1995 1994
---------------------------------------------------------------------------
North American 1,030 1,052 1,072 1,072
Non-North American 749 749 738 764
----- ----- ----- -----
Total Rig Count 1,779 1,801 1,810 1,836
===== ===== ===== =====
U.S. Workover Rig Count 1,242 1,309 1,308 1,419
===== ===== ===== =====
-7-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
North American Activity
The North American rig count was down 2.1% for the quarter and unchanged
for the six months in comparison to 1994. The decrease for the quarter is
primarily due to a 7.9% decline in the average land rig count, offset by a 9.8%
increase in the Canadian drilling activity. The average offshore rig count
remained unchanged for the quarter and was up slightly for the six months. The
Company benefits from offshore drilling, more so than land drilling, as this
type of activity requires the premium products and services offered by the
Company. U.S. workover activity declined 5.1% for the quarter and 7.8% for the
six months.
The Company anticipates that reduced gas prices and high pipeline
utilization will take the edge off Canada's drilling boom. Canadian activity
for the remainder of the year is expected to fall short of 1994 levels. In the
U.S., the Company is expecting a decrease in gas-directed drilling to be
partially offset by a modest increase in oil-directed drilling. U.S. workover
activity is expected to remain flat over the next year.
Non-North American Activity
Outside North America, activity was flat for the quarter and down 3.4% for
the six months. Most regions in the Eastern Hemisphere showed a decrease in
activity from 1994 levels. These declines were offset by Latin America
activity which was up 27.4% for the quarter and 23.2% for the six months. The
Company expects a modest increase in North Sea activity with little change in
activity in the remainder of the Eastern Hemisphere over the near term as
political issues and volatility in crude oil prices will continue to create
uncertainty. In Latin America, the Company expects to see continued growth in
drilling activity over the remainder of 1995 led by Venezuela, Argentina and
Colombia.
OTHER MATTERS
In May 1995, President Clinton issued an executive order prohibiting
virtually all trade transactions between the United States and Iran. The exact
scope of the restrictions will not be known until the implementing regulations
of the U. S. Departments of Treasury and Commerce are issued, the timing of
which is not expected for several weeks. At March 31, 1995, the Company,
through its non-U.S. subsidiaries, had receivables from the national oil
company of Iran in an amount of approximately one percent of stockholders'
equity. Such receivables with interest are currently being paid pursuant to an
agreement with the Iranian oil company. It is currently unknown how the
Iranian Government will react to the executive order and what impact such
reaction might have on the ability to collect these receivables. Sales to Iran
in the year ended September 30, 1994 and in the six months ended March 31, 1995
were not significant.
DISPOSITION
The Company sold the EnviroTech Pumpsystems ("Pumpsystems") group of
-8-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
companies in September 1994. The decision to divest Pumpsystems and EM&C was
part of a continuing review of the Company's core product and service
competencies. The Pumpsystems sale provided approximately $210.0 million in
proceeds and resulted in a gain of $101.0 million. Pumpsystems had $48.4
million of revenue in the second quarter of 1994 and $96.5 million in the first
six months of 1994.
RESULTS OF OPERATIONS
Revenues
The following table summarizes the impact of the Pumpsystems disposition on
consolidated revenues:
Three Months Ending Six Months Ending
March 31, March 31,
(In millions) 1995 1994 1995 1994
---------------------------------------------------------------------------
Consolidated Revenues:
Sales $ 447.3 $ 453.3 $ 859.2 $ 886.8
Services and rentals 205.3 196.7 400.3 387.8
------ ------ ------- -------
Total 652.6 650.0 1,259.5 1,274.6
Less Pumpsystems Operations:
Sales 48.4 96.5
------ -------
Revenues from Ongoing Operations:
Sales 447.3 404.9 859.2 790.3
Services and rentals 205.3 196.7 400.3 387.8
------ ------ ------- -------
Total $ 652.6 $ 601.6 $1,259.5 $1,178.1
====== ====== ======= =======
Consolidated revenues for the second quarter of 1995 increased slightly
compared to the same quarter last year. The results of Pumpsystems have been
reported in a manner similar to discontinued operations since March 1994 which
represents the date at which the decision to divest the business was made.
Revenues from ongoing operations for the second quarter of 1995 were up
8.5%. Oilfield Operations currently represent approximately 87% of
consolidated revenues with the remaining 13% represented by Process Equipment
Operations. Oilfield Operations reported revenues of $570.2 million for the
quarter and $1,108.0 million for the six months, an improvement of 7.3% and
5.6% from the second quarter and first six months of 1994, respectively. Much
of the improvement in Oilfield Operations sales, services and rentals revenue
is reflective of strong activity in Latin America, Canada and the Middle East.
Process Equipment Operations sales, services and rentals revenue increased
17.5% to $82.4 million in the second quarter of 1995 and increased 17.7% to
$151.5 million in the first six months of 1995. An improving worldwide economy
drove the revenue favorability in international markets particularly in
Southeast Asia, China and Latin America.
-9-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
Operating Income
The following table summarizes the effect of the Pumpsystems disposition on
consolidated operating income:
Three Months Ending Six Months Ending
March 31, March 31,
(In millions) 1995 1994 1995 1994
---------------------------------------------------------------------------
Consolidated Operating Income $ 59.6 $ 55.6 $112.4 $ 99.2
Less Pumpsystems Operating Income (4.1) (7.4)
----- ----- ----- -----
Operating Income from Ongoing
Operations $ 59.6 $ 51.5 $112.4 $ 91.8
===== ===== ===== =====
Consolidated operating income increased 7.2% in the second quarter of 1995
and 13.3% in the first six months of 1995 when compared to 1994. Operating
income from ongoing operations, which excludes Pumpsystems operating income,
increased 15.7% for the quarter and 22.4% for the six months compared to the
same period in the prior year. The increases result from improved revenues and
the impact of various cost containment measures, including the ongoing benefits
from the consolidation of several divisions in prior years.
Costs and Expenses
In general, operating expenses have fluctuated within a narrow band as a
percentage of consolidated revenues as the Company manages expenses both in
absolute terms and as a function of revenues.
Cost of sales and research and engineering expenses decreased in the second
quarter of 1995 in line with the revenue decreases associated with the
disposition of Pumpsystems. Cost of services and rentals and marketing and
field expenses were not greatly impacted by the Pumpsystems disposition due to
the nature of their business and reflect an increase in the three and six month
results in 1995 in line with the revenue increases from ongoing operations.
General and administrative expenses, which are less sensitive to changes in
revenue, increased $5.7 million in the second quarter of 1995 and decreased
$3.3 million in the first six months of 1995. The increase in the second
quarter is due primarily to nonrecurring charges including the settlement of
certain litigation and larger foreign exchange losses due to the weakening
dollar. The decrease for the six months is reflective of the impact of the
Pumpsystems disposition ($6.8 million) offset by the increase incurred in the
second quarter of 1995.
Interest Expense
Interest expense in the second quarter of 1995 decreased $2.9 million from
the same quarter in 1994. In the first six months of 1995, interest expense
decreased $6.6 million compared to 1994. The decreases are attributable
primarily to the repurchase or defeasance in the third and fourth quarters of
1994 of all the outstanding 6% discount debentures which had an effective rate
of 14.66%.
-10-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
CAPITAL RESOURCES AND LIQUIDITY
Financing Activities
Net cash inflows from financing activities were $66.4 million in the first
six months of 1995 compared to net cash outflows of $119.8 million in the first
six months of 1994. Total debt outstanding at March 31, 1995 was $761.7
million, compared to $653.3 million at September 30, 1994. The debt to equity
ratio was .468 at March 31, 1995, compared to .399 at September 30, 1994.
In April 1994, the Company issued debenture purchase warrants under
favorable terms for $7.0 million which entitled the holders to purchase $93.0
million of the Company's debentures. In the first quarter of 1995, certain
holders exercised warrants and purchased $78.0 million of debentures. In the
second quarter of 1995, the remaining warrants were exercised and $15.0 million
of debentures were purchased. During the first six months of 1994, the Company
used the proceeds from sale of noncore businesses to reduce debt level.
At March 31, 1995, the Company had $724.6 million of credit facilities with
commercial banks, of which $506.1 million is committed. These facilities are
subject to normal banking terms and conditions and do not materially restrict
the Company's activities.
Investing Activities
Net cash outflows from investing activities were $38.4 million in the first
six months of 1995 compared to net cash inflows of $87.9 million in the first
six months of 1994.
Proceeds from the disposal of assets and noncore businesses generated $20.2
million in 1995 and $144.5 million in 1994. Property additions increased
slightly in 1995 compared to 1994. The ratio of capital expenditures to
depreciation has increased over the same period from 86.6% to 101.9%. The
majority of the capital expenditures have been in Oilfield Operations where the
largest single item is the expenditure for rental tools and equipment to
supplement the rental fleet. Funds provided from operations and outstanding
lines of credit are expected to be more than adequate to meet future capital
expenditure requirements. The Company expects 1995 capital expenditures to be
between $120.0 million and $140.0 million as it focuses on replacing capital in
amounts comparable to annual depreciation.
Operating Activities
Net cash inflows from operating activities were $33.2 million in the first
six months of 1995 which were comparable to the first six months of 1994.
-11-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS CONTINUED
ACCOUNTING STANDARDS
Postemployment Benefits
In November 1992, the FASB issued SFAS No. 112, "Employers' Accounting for
Postemployment Benefits". The statement requires accrual basis accounting for
such benefits as opposed to cash basis accounting. The Company adopted SFAS
No. 112 effective October 1, 1994 and immediately recognized the cumulative
effect of the change in accounting recording a charge to income of $14.6
million ($.10 per share), net of an income tax benefit of $7.9 million.
Expense under SFAS No. 112 for 1995 related to these benefits is not expected
to be significantly different from actual cash payments.
-12-
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
None.
(b) Reports on Form 8-K:
None.
-13-
<PAGE>
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 thereunto duly authorized.
BAKER HUGHES INCORPORATED
(Registrant)
Date: May 15, 1995 By /s/LARRY O'DONNELL
------------------------------------
Deputy General Counsel (Acting
General Counsel) & Corporate
Secretary
Date: May 15, 1995 By /s/JAMES E. BRAUN
------------------------------------
Controller
-14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF OPERATIONS AND CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 128,846
<SECURITIES> 0
<RECEIVABLES> 643,822
<ALLOWANCES> 22,964
<INVENTORY> 660,114
<CURRENT-ASSETS> 1,515,671
<PP&E> 556,189
<DEPRECIATION> 1,012,542
<TOTAL-ASSETS> 3,104,720
<CURRENT-LIABILITIES> 496,563
<BONDS> 760,167
<COMMON> 141,087
0
4,000
<OTHER-SE> 1,482,046
<TOTAL-LIABILITY-AND-EQUITY> 3,104,720
<SALES> 859,209
<TOTAL-REVENUES> 1,259,526
<CGS> 500,349
<TOTAL-COSTS> 1,030,216
<OTHER-EXPENSES> 116,944
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 25,180
<INCOME-PRETAX> 890,261
<INCOME-TAX> 37,030
<INCOME-CONTINUING> 52,231
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> (14,598)
<NET-INCOME> 37,633
<EPS-PRIMARY> .23
<EPS-DILUTED> .23
</TABLE>
