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Halliburton meets 1Q target
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April 26, 2000: 7:26 p.m. ET
Oil services company revenue dips 12 percent; Dresser unit may be sold
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NEW YORK (CNNfn) - Energy and engineering firm Halliburton Co. on Wednesday reported a first-quarter operating profit of 11 cents a share, matching analysts' expectations, but said revenue fell 12 percent and revealed a strategic plan to sell its Dresser Equipment Group unit.
Dallas-based Halliburton (HAL: Research, Estimates), which provides construction, offshore drilling, and well maintenance services for the oil and gas industry, said it earned $49 million in the period ending March 31, versus $62 million, or 14 cents a share a year ago.
Wall Street analysts surveyed by earnings tracker First Call/Thompson expected the company to report profit of 11 cents a share, with estimates ranging from 10 cents to 15 cents a share.
Bruised by sluggish international business and a slump in its Engineering and Construction Group business segment, total revenue from continued operations fell to $2.85 billion from $3.26 billion.
Low levels of international business activity had hampered the company in recent quarters, the company said. It noted revenue at its Energy Services Group business segment, which derives 68 percent of is sales overseas, were $1.7 billion, down two percent, despite, a 12 percent revenue rise in the United States.
Still, the company said it is enthusiastic about the second half of the year and the outlook for the company's international operations.
The first quarter results were released after the close the regular trading session. Shares of Halliburton closed at 43-5/8, up 2-3/16.
Dresser, 'a drag' on the stock, to be sold
Dress Equipment was not a good fit with Halliburton's core oilfield services and engineering and construction businesses, the company said.
Halliburton acquired Dresser equipment as a part of its $8 billion merger in 1998 Dresser Industries Inc. But recently the company announced sales of Dresser's interests in the Dresser-Rand and Ingersoll Dresser Pump joint ventures.
Dresser Equipment, which makes equipment for the manufacturing and energy industries, was a drag on the company's share price, which is undervalued, chief executive Dick Cheney said on a conference call with analysts.
 "We feel they did not fit with our core objectives," Halliburton Chairman and Chief Executive Dick Cheney told analysts on a conference call on Wednesday afternoon. He added that Halliburton will use proceeds from all of the proposed sales for a combination of acquisitions supporting core activities and for internal investment opportunities.
The unit had revenue of $337 million and operating income of $36 million in the first quarter. The company expects to complete the sale until the fourth quarter of 2000 or first quarter of 2001.
Halliburton also said it planned to a repurchase up to 44 million shares of its common stock, or about 10 percent of the company's outstanding common stock. 
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Halliburton
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