|
|
|
HALLIBURTON 2002 FOURTH QUARTER ADJUSTMENTS
HOUSTON, Texas - Halliburton (NYSE:HAL) announced today that subsequent to the issuance of its 2002 fourth quarter earnings press release on February 20, 2003, the Company recorded an additional $3 million expense, net of tax, to continuing operations and an $11 million expense, net of tax, to discontinued operations for an overall decrease in net income for the fourth quarter of 2002 of $14 million. The $3 million adjustment to continuing operations relates to the results of a majority owned consolidated foreign joint venture. The $11 million adjustment to discontinued operations relates to a reduction in estimated insurance recoveries for asbestos and silica claims and was the result of a recent announcement regarding the financial viability of an insurance carrier that was voluntarily placed in rehabilitation.
In estimating the probable insurance recoveries related to asbestos and silica liability claims, the Company with assistance from Peterson Consulting, its third party insurance estimator, assumed that no recovery from insolvent carriers would be received. On March 5, 2003, the New Hampshire Insurance Department announced that The Home Insurance Company had been voluntarily placed in rehabilitation. Based upon this announcement, the Company believes The Home Insurance Company should be treated as an insolvent carrier for purposes of computing insurance recoveries. As a result, the Company has revised the estimate of probable insurance recoveries as of December 31, 2002 to exclude any recoveries from The Home Insurance Company and has recorded an $11 million expense, net of tax, to discontinued operations in 2002. Although the Company has adopted this accounting treatment, the Company will continue to pursue all of its claims against all insolvent insurance carriers.
In addition, the Company recorded an aggregate $3 million expense, net of taxes, related to one of its majority owned consolidated foreign joint ventures in the Engineering and Construction segment, which affected depreciation expense, tax expense and minority interest expense.
After the effect of these adjustments, the Company’s fourth quarter 2002 net loss from continuing operations remains at $0.30 per share, unchanged from the earnings per share previously announced for the fourth quarter. In addition, the Company’s 2002 fourth quarter net income from continuing operations on a pro forma basis remains unchanged at $0.24 per share. Reconciliations of the pro forma financial results and the adjusted financial results are included in the attached tables. (PDF file, 81kb)
Halliburton, founded in 1919, is one of the world's largest providers of products and services to the petroleum and energy industries. The Company serves its customers with a broad range of products and services through its Energy Services Group and Engineering and Construction Group business segments. The Company’s World Wide Web site can be accessed at www.halliburton.com.
Contact
Cedric W. Burgher
cedric.burgher@halliburton.com
Vice President, Investor Relations
(p) 713.759.2688
Wendy Hall
wendy.hall@halliburton.com
Manager, Media Relations
(p) 713.759.2605
Employment Contact
jobs@halliburton.com
(p) 800.888.7668
ext. 8005
Supplier/Procurement Contact
kbr_supplier_relations@halliburton.com
Supplier Diversity Contact
Erin Petkovich
supplier_diversity@halliburton.com
Back to Top
| |
|
