Weatherford Int'l Q1 Adj. Profit Beats View, Reiterates 2014 Earnings Outlook

(RTTNews) - Oilfield services provider Weatherford International Ltd. (WFT) on Thursday reported a loss for the first quarter, reflecting lower revenues and higher one-time charges. However, adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates. Looking ahead, the company reiterated its earnings outlook for fiscal 2014.

The Zug, Switzerland-based company posted net loss attributable to the company of $41 million or $0.05 per share, compared to net income of $22 million or $0.03 per share in the prior-year quarter. The latest quarter's results include net after tax charges of $140 million or $0.18 per share, while the year-ago quarter results included charges of $0.12 per share.

Excluding special items, adjusted net income for the quarter was $99 million or $0.13 per share, compared to $117 million or $0.15 per share in the year-ago quarter. On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude one-time special items.

Net revenues for the quarter declined 6 percent to $3.60 billion from $3.84 billion in the year-ago period and missed analysts' consensus estimate of $3.70 billion.

On a geographical basis, Weatherford's revenues from North America declined 5 percent from the year-ago quarter to $1.61 billion, while Middle East, North Africa and Asia region revenues decreased 1 percent to $781 million.

Europe/Sub-Sahara Africa/Russia revenues for the quarter declined 5 percent from the prior-year period to $664 million, while Latin American region revenues decreased 26 percent to $541 million.

Looking ahead to fiscal 2014, Weatherford reiterated its outlook for adjusted earnings in a range of $1.10 to $1.20 per share. Analysts currently expect earnings of $0.99 per share for the year.

Weatherford said that to date, it has identified over 6,600 positions for elimination, with expected annualized pre-tax cost savings of about $450 million. During the first quarter, it completed about 56 percent of its planned reduction in workforce with an estimated pre-tax annualized savings of $263 million.

Further, the company added that it has started the process of closing 20 underperforming operating locations in various countries, and identified an additional 30 operating locations to begin closing during the second quarter.

The company expect these actions will bring additional costs savings, both in the form of headcount reductions and other savings. According to the company, the additional headcount reductions will enable it to fully deliver on the workforce reduction target of 7,000 positions and achieve targeted annualized pre-tax cost savings of $500 million.

WFT closed Thursday's trading at $18.41, down $0.14 or 0.75 percent on a volume of 10.01 million shares.