Eight Percent Increase Over Prior Year
(Logo: http://www.newscom.com/cgi-bin/prnh/19990308/WEATHERFORDLOGO )
Fourth quarter revenues were
Sequentially, the company's fourth quarter diluted earnings per share from
continuing operations, before non-recurring items, were
For the year ended
Revenues for the quarter were
Operating income of
Fourth quarter revenues of
The current quarter's operating income of
Fourth quarter revenues of
The current quarter's operating income of
Latin America
Fourth quarter revenues of
The current quarter's operating income of
Reclassifications and Non-GAAP
Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have been provided for meaningful comparisons between current results and results in prior operating periods.
Conference Call
The company will host a conference call with financial analysts to discuss
the 2008 fourth quarter results on
Weatherford is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 100 countries and employs approximately 49,600 people worldwide.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 concerning, among
other things, Weatherford's prospects for its operations which are subject to
certain risks, uncertainties and assumptions. These risks and uncertainties,
which are more fully described in
Contact: Andrew P. Becnel (713) 693-4136
Chief Financial Officer
Weatherford International Ltd.
Consolidated Condensed Statements of Income
(Unaudited)
(In 000's, Except Per Share Amounts)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------- -------------------
2008 2007 2008 2007
---- ---- ---- ----
Net Revenues:
North America $1,177,936 $1,053,631 $4,460,147 $3,937,456
Middle East /North
Africa/Asia 675,513 537,747 2,391,520 1,823,769
Europe /West Africa /
CIS 393,005 344,335 1,539,190 1,188,519
Latin America 388,172 256,128 1,209,707 882,318
------- ------- --------- -------
2,634,626 2,191,841 9,600,564 7,832,062
--------- --------- --------- ---------
Operating Income
(Expense):
North America 296,407 256,427 1,125,199 1,013,088
Middle East /North
Africa/Asia 163,238 131,953 561,012 416,263
Europe /West Africa /
CIS 88,158 90,935 382,772 293,846
Latin America 88,720 63,427 277,094 203,211
Research and
Development (53,564) (44,904) (192,659) (169,317)
Corporate Expenses (35,355) (26,403) (135,012) (101,968)
Exit and
Restructuring (16,253) (9,843) (39,857) (30,787)
------- ------ ------- -------
531,351 461,592 1,978,549 1,624,336
Other Income (Expense):
Interest Expense,
Net (67,956) (52,023) (243,679) (171,281)
Other, Net (31,930) (1,545) (44,956) (8,569)
------- ------ ------- ------
Income from Continuing
Operations
Before Income
Taxes and Minority
Interest 431,465 408,024 1,689,914 1,444,486
Provision for Income
Taxes:
Provision for
Operations (74,321) (67,434) (296,117) (291,252)
Tax Charges and
Benefit From
Exit and Restructuring - 1,752 7,306 (41,508)
----- ----- ----- -------
(74,321) (65,682) (288,811) (332,760)
Income from Continuing
Operations Before Minority
Interest 357,144 342,342 1,401,103 1,111,726
Minority Interest, Net
of Taxes (9,026) (5,590) (34,272) (19,751)
------ ------ ------- -------
Income from Continuing
Operations $348,118 $336,752 $1,366,831 $1,091,975
Loss from Discontinued
Operation, Net of Taxes - (5,741) (12,928) (21,369)
----- ------ ------- -------
Net Income $348,118 $331,011 $1,353,903 $1,070,606
======== ======== ========== ==========
Basic Earnings Per Share:
Income from Continuing
Operations $0.51 $0.50 $2.00 $1.61
Loss from Discontinued
Operation - (0.01) (0.02) (0.03)
----- ----- ----- -----
Net Income $0.51 $0.49 $1.98 $1.58
===== ===== ===== =====
Diluted Earnings Per Share:
Income from Continuing
Operations $0.50 $0.48 $1.96 $1.57
Loss from Discontinued
Operation - (0.01) (0.02) (0.03)
----- ----- ----- -----
Net Income $0.50 $0.47 $1.94 $1.54
===== ===== ===== =====
Weighted Average Shares
Outstanding:
Basic 686,222 677,094 682,704 677,032
Diluted 692,414 697,318 698,178 695,516
Weatherford International Ltd.
Selected Income Statement Information
(Unaudited)
(In 000's)
Three Months
Ended
-----
12/31/2008 9/30/2008 6/30/2008 3/31/2008 12/31/2007
---------- --------- --------- --------- ----------
Net
Revenues:
North
America $1,177,936 $1,179,605 $1,012,244 $1,090,362 $1,053,631
Middle
East /
North
Africa /
Asia 675,513 637,872 556,251 521,884 537,747
Europe /
West
Africa /
CIS 393,005 408,993 389,563 347,629 344,335
Latin
America 388,172 314,326 271,192 236,017 256,128
------- ------- ------- ------- -------
$2,634,626 $2,540,796 $2,229,250 $2,195,892 $2,191,841
========== ========== ========== ========== ==========
Operating
Income
(Expense):
North
America $296,407 $312,887 $224,252 $291,653 $256,427
Middle
East /
North
Africa /
Asia 163,238 146,450 130,650 120,674 131,953
Europe /
West
Africa /
CIS 88,158 102,385 99,016 93,213 90,935
Latin
America 88,720 69,521 58,355 60,498 63,427
Research
and
Develop-
ment (53,564) (52,026) (44,430) (42,639) (44,904)
Corporate
Expenses (35,355) (30,750) (35,275) (33,632) (26,403)
Exit and
Restruct-
uring (16,253) (13,727) 64,356 (74,233) (9,843)
------- ------- ------ ------- ------
$531,351 $534,740 $496,924 $415,534 $461,592
======== ======== ======== ======== ========
Supplemental Information
(Unaudited)
(In 000's)
Three Months
Ended
-----
12/31/2008 9/30/2008 6/30/2008 3/31/2008 12/31/2007
---------- --------- --------- --------- ----------
Depreciation and
Amortization:
North America $80,555 $79,619 $75,093 $74,787 $74,452
Middle East /
North Africa /
Asia 55,587 49,138 45,982 45,736 44,220
Europe /West
Africa/CIS 33,825 31,911 27,600 26,621 24,671
Latin America 30,331 23,561 20,368 19,682 21,352
Research and
Development 1,931 1,902 1,867 1,694 1,671
Corporate 1,449 1,000 800 768 825
----- ----- --- --- ---
$203,678 $187,131 $171,710 $169,288 $167,191
======== ======== ======== ======== ========
We report our financial results in accordance with generally accepted
accounting principles (GAAP). However, Weatherford's management believes that
certain non-GAAP performance measures and ratios may provide users of this
financial information additional meaningful comparisons between current
results and results in prior operating periods. One such non-GAAP financial
measure we may present from time to time is operating income or income from
continuing operations excluding certain charges or amounts. This adjusted
income amount is not a measure of financial performance under GAAP.
Accordingly, it should not be considered as a substitute for operating income,
net income or other income data prepared in accordance with GAAP. See the
table below for supplemental financial data and corresponding reconciliations
to GAAP financial measures for the three months ended
Weatherford International Ltd.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
Three Months Ended
------------------
December 31, September 30, December 31,
2008 2008 2007
---- ---- ----
Operating Income:
GAAP Operating
Income $531,351 $534,740 $461,592
Exit and
Restructuring 16,253 (a) 13,727 (a) 9,843 (b)
------ ------ -----
Non-GAAP
Operating
Income $547,604 $548,467 $471,435
======== ======== ========
Provision for
Income Taxes:
GAAP Provision
for Income
Taxes $(74,321) $(82,990) $(65,682)
Tax impact of Exit
and Restructuring - - (1,752) (b)
Other Charges - - -
----- ----- -----
Non-GAAP Provision
for Income Taxes $(74,321) $(82,990) $(67,434)
======== ======== ========
Income from
Continuing
Operations:
GAAP Income from
Continuing
Operations $348,118 $370,600 $336,752
Total Exit and
Restructuring and
Other Charges,
net of tax 16,253 (a) 13,727 (a) 8,091 (b)
------ ------ -----
Non-GAAP Income
from Continuing
Operations $364,371 $384,327 $344,843
======== ======== ========
Diluted Earnings
Per Share From
Continuing
Operations:
GAAP Diluted
Earnings per
Share From
Continuing
Operations $0.50 $0.53 $0.48
Total Exit and
Restructuring and
Other Charges,
net of tax 0.03 (a) 0.02 (a) 0.01 (b)
---- ---- ----
Non-GAAP
Diluted
Earnings per
Share From
Continuing
Operations $0.53 $0.55 $0.49
===== ===== =====
Year Ended
----------
December 31, December 31,
2008 2007
---- ----
Operating Income:
GAAP Operating Income $1,978,549 $1,624,336
Exit and Restructuring 39,857 (c) 30,787 (d)
------ ------
Non-GAAP
Operating
Income $2,018,406 $1,655,123
========== ==========
Provision for Income Taxes:
GAAP Provision
for Income Taxes $(288,811) $(332,760)
Tax impact of Exit
and Restructuring (7,306) (c) (8,492) (d)
Other Charges - 50,000
----- ------
Non-GAAP Provision
for Income Taxes $(296,117) $(291,252)
========= =========
Income from
Continuing
Operations:
GAAP Income from
Continuing Operations $1,366,831 $1,091,975
Total Exit and
Restructuring and
Other Charges, net of tax 32,551 (c) 72,295 (d)
------ ------
Non-GAAP Income from
Continuing Operations $1,399,382 $1,164,270
========== ==========
Diluted Earnings Per Share
From Continuing Operations:
GAAP Diluted
Earnings per Share
From Continuing Operations $1.96 $1.57
Total Exit and Restructuring
and Other Charges, net of tax 0.04 (c) 0.10 (d)
---- ----
Non-GAAP Diluted
Earnings per Share
From Continuing Operations $2.00 $1.67
===== =====
Note (a): This amount represents investigation costs
incurred in connection with on-going investigations by the
U.S. government and costs related to the Company's
withdrawal from sanctioned countries.
Note (b): This amount represents investigation costs
incurred in connection with on-going investigations by the
U.S. government.
Note (c): This amount represents a gain on the restructuring
of a Qatar operation into a JV, partially offset by
investigation and exit costs incurred in connection with the
Company's withdrawal from sanctioned countries.
Note (d): This amount represents severance charges incurred
in connection with the Company's restructuring activities
and investigation costs incurred in connection with on-going
investigations by the U.S. government. In addition, the
Company incurred a tax charge of $50 million for withholding
taxes required to be paid on a distribution made by the
Company to one of its foreign subsidiaries.
SOURCE
CONTACT:
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http://photoarchive.ap.org
photodesk@prnewswire.com/
Web Site: http://www.weatherford.com /
(WFT)