Baker Hughes Q3 2007 Earnings Call Transcript

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2007-10-26 09:13:58.0

Tags: Baker Hughes Inc.

Question-and-Answer Session

Operator

Your first question comes from Jim Crandell with Lehman Brothers.

Gary Flaharty

Good morning.

Jim Crandell - Lehman Brothers

Good morning, everyone and Rod congratulations on your retirement. You have done a great job over the years.

Rod Clark

Thank you, Jim.

Jim Crandell - Lehman Brothers

Well, my question is about the revenue side, first on the product line basis and then on a country basis. On a product line basis what I consider to be your three fastest growth divisions showed the lowest quarter-to-quarter growth this past quarter and I think I heard some explanations why that was true with INTEQ. But I was wondering if those three divisions, could you expand on a little bit more? Is it a function of geography, capacity constraints and what if anything should we read into it?

Chad Deaton

Well, you mentioned INTEQ. I assume you are probably talking of Baker Oil Tools for another one and Hughes Christensen or Atlas?

Jim Crandell - Lehman Brothers

Yes, Atlas, your three lowest growth ones this quarter on the revenue side I would have thought, at least I think speculate they should be your three fastest ones.

Chad Deaton

Yeah. Well, INTEQ had to do some shift in the UK. I mean, there are just some project delays and other things. And also Nigeria, obviously some issues going on in Nigeria. Logistics issues, getting tools in and other things which all has been taken place there in the news over the last while. Elsewhere, INTEQ was up very solidly in Latin America, that Brazil continues to ramp up. I think we're 48% share there now and over 50 years we would continue to ramp. So, I don't see any issue in INTEQ that has been any concerned on quarter-to-quarter.

Atlas, North America we mentioned in the last second quarter we had lost some share in North America and Atlas in the third quarter did very nicely, the Gulf of Mexico got back quite a bit. In fact, it was up significantly in the US sector.

If you look at Atlas year-on-year outside North America it's growing in excess of 30% year-on-year. So, as Rod said in his comments, we've paid a lot of attention to Atlas over these last year, year and a half. We've put in some significant investments and we're quite pleased with where Atlas is going in that area.

 

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