Baker Huges and Foster Wheeler reported their third quarter earnings that saw Baker Huges post record profits but Foster Wheeler saw its profits fall.
Baker Hughes posts record Q3 results
The company announced adjusted net income for the third quarter 2011 of US$518mn. This compares to US$255 million for the third quarter 2010 and adjusted net income of US$408 million for the second quarter 2011.
Revenue for the third quarter 2011 was US$5.18 billion, up 27 per cent compared to US$4.08 billion for the third quarter 2010 and up nine per cent compared to US$4.74 billion for the second quarter 2011.
Chad C. Deaton, Baker Hughes Chairman and Chief Executive Officer, said, "The third quarter was a record revenue quarter for Baker Hughes."
"Internationally, we delivered strong revenue growth...We expect to deliver 15 per cent international margins in the fourth quarter. Oil demand is at record levels and growth for hydrocarbons will remain strong in the years to come, supported by the continued industrialization of developing economies. Production from declining conventional resources will be replaced by increases in production from the service-intensive unconventional hydrocarbon resources in the U.S. and over time, internationally. We continue to position Baker Hughes to take advantage of long-term opportunities while maintaining the flexibility to address short-term changes to our business," Deaton said.
Foster Wheeler Q3 results down
Foster Wheeler reported net income for the third quarter of 2011 of US$36.9mn compared with US$51.7mn, in the third quarter of 2010.
Foster Wheeler's Chief Executive Officer, Kent Masters, said, "Net income for the third quarter of 2011 was down relative to the average quarter of 2010, primarily due to lower EBITDA margins in the company's two business groups. Even so, both groups delivered strong revenues and continued good operating performance. In particular, the company reported the highest level of consolidated scope revenues since the fourth quarter of 2009."
In commenting on the outlook for the company's two business groups, Masters said, "In our Global E&C Group, we are maintaining full-year 2011 EBITDA margin guidance of 13 per cent-15 per cent. We expect to see a continuation of the trend of sequential-quarter increases in scope revenues, but we believe full-year scope revenues will be slightly below full-year 2010."
