Baker Hughes Results Improve in Second Quarter 2000

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HOUSTON--(BUSINESS WIRE)--July 31, 2000--Baker Hughes Incorporated (NYSE:BHI)(PCX:BHI)(EBS:BHI) announced today that net income for the three months ended June 30, 2000 was $60.9 million or $0.18 per share (diluted), compared to $68.5 million or $0.21 per share (diluted) for the three months ended June 30, 1999 and $18.4 million or $0.06 per share (diluted) for the three months ended March 31, 2000. Results for the current quarter include the impact of gains, net of tax, related to the company's holdings of Varco (Tuboscope) stock of $6.6 million or $0.02 per share (diluted) and net unusual credits, net of tax, of $13.3 million or $0.04 per share (diluted). Operating profit after tax from continuing operations for the second quarter of 2000, excluding these gains was $41.0 million or $0.12 per share (diluted). This compares with $22.8 million or $0.07 per share (diluted) for the second quarter of 1999, which also excludes the impact of all non-operational items. (See Attachment 3 - Impact of Non-Operational Items.)

The operational results for the June 2000 quarter include the impact of a $15.6 million pre-tax adjustment to the multi-client seismic library. The adjustment was made following the regularly scheduled quarterly evaluation of the multi-client seismic library, which is conducted on a survey-by-survey basis. An increase in the projected sales of one of Western Geophysical's large Gulf of Mexico surveys was the primary basis for this adjustment.

Revenue for the three months ended June 30, 2000 was $1.175 billion, up 6% from the $1.111 billion reported for the three months ended June 30, 1999 and up 2% from the $1.157 billion reported for the three months ended March 31, 2000.

Earnings before interest expense, taxes, depreciation and amortization (EBITDA) from continuing operations, excluding non-operational items, was $243.7 million or $0.73 per share (diluted) for the three months ended June 30, 2000 as compared to $273.4 million or $0.83 per share (diluted) for the three months ended June 30, 1999 and $227.8 million or $0.69 per share (diluted) for the three months ended March 31, 2000.

"This quarter's encouraging results show that Baker Hughes' core drilling and completion businesses are continuing to improve," said Joe B. Foster, interim chairman, president and CEO of Baker Hughes. "Excluding Western Geophysical, second quarter revenues from the oilfield divisions were up 14% and their operating profits before tax were up 48%, compared to the second quarter of 1999. Clearly, margins are improving. We expect continued improvements in North American markets, and in our financial performance during the second half of this year."

As announced on July 18, Michael E. Wiley will become chairman, president and CEO on August 14, 2000. Mr. Foster commented, "I am excited about what Baker Hughes can accomplish under Mike Wiley's leadership to sustain this growth. I also am grateful for the support I have received from our board, our employees, and our stockholders during the past six months. Together, we have made Baker Hughes a stronger and more focused company with a very bright future."

Western GECO

The company continues to make good progress on developing definitive documentation with Schlumberger Limited to implement the creation of its Western GECO venture in the seismic business. The company is providing additional information at the request of the Department of Justice with respect to the transaction and continues to expect it to close prior to the end of the year.

Conference Call

The company has scheduled a conference call to discuss the results of today's earnings announcement. The call will begin at noon eastern daylight time, 11:00 a.m. central daylight time. To access the call please contact the conference call operator at 415/228-4572, 10 to 15 minutes prior to the scheduled start time, and ask for the "Baker Hughes Conference Call." A replay will be available through August 4, 2000. The number for the replay is 402/220-0188. The call and replay will also be webcast on www.streetevents.com.

Attachments

Attachment 1 - Operational Highlights

Attachment 2 - Geographic Highlights

Attachment 3 - Impact of Non-Operational Items

Attachment 4 - Selected Financial Information -0-

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                         Financial Information

                A table of comparative results follows:
                (In millions, except per share amounts)



                                        Three Months Ended

                                     June 30,               March 31,
UNAUDITED                      2000            1999           2000


Revenues                  $  1,174.5      $  1,110.8       $ 1,157.3


Costs of revenues              904.7           870.3           920.6

Selling, general and
 administrative                166.8           151.1           174.4

Unusual credit                 (18.4)          (33.3)              -

Total costs and expenses     1,053.1           988.1         1,095.0

Operating income               121.4           122.7            62.3

Interest expense               (41.9)          (40.2)          (42.1)

Interest income                  0.5             1.3             0.5

Gain on trading
 securities                     10.1            -                7.1

Income from continuing
 operations before
 income taxes                   90.1            83.8            27.8


Income taxes                   (29.2)          (12.4)           (9.4)

Income from continuing
 operations                     60.9            71.4            18.4

Income (loss) from
 discontinued operations,
 net of tax                        -            (2.9)              -


Net income                $     60.9      $     68.5       $    18.4



Basic earnings per share:

 Income from continuing
  operations              $     0.18      $     0.22       $    0.06


 Income (loss) from
  discontinued
  operations                       -           (0.01)              -


Net income                $     0.18      $     0.21       $    0.06


Diluted earnings per share:

 Income from continuing
  operations              $     0.18      $     0.22       $    0.06


 Income (loss) from
  discontinued
  operations                       -           (0.01)              -


Net income                $     0.18      $     0.21       $    0.06



Depreciation, depletion
 and amortization
 expense, excluding
 goodwill amortization    $    128.9      $    186.6       $   153.8

Goodwill amortization           11.3            11.4            11.2

Total depreciation,
 depletion and
 amortization expense     $    140.2      $    198.0       $   165.0


Capital expenditures      $    120.9      $    160.8       $   195.7


Shares outstanding,
 basic (millions)              330.5           327.5           329.9

Shares outstanding,
 diluted (millions)            332.8           329.6           330.6


Earnings before interest
 expense and
 taxes (EBIT)(1)          $    103.5      $     75.4       $    62.8



Earnings before interest
 expense, taxes,
 depreciation,
 depletion and
 amortization (EBITDA)(1) $    243.7      $    273.4       $   227.8


    (1) Computed excluding non-operational items.


                         Financial Information

                A table of comparative results follows:
                (In millions, except per share amounts)



                                                 Six Months Ended

                                                     June 30,
UNAUDITED                                      2000            1999


Revenues                                $    2,331.7    $    2,325.2


Costs of revenues                            1,825.3         1,807.4

Selling, general and administrative            341.1           322.7

Unusual credit                                 (18.4)          (33.3)

Total costs and expenses                     2,148.0         2,096.8

Operating income                               183.7           228.4

Interest expense                               (84.0)          (78.9)

Interest income                                  1.0             3.5

Gain on trading securities                      17.2               -

Income from continuing operations
 before income taxes                           117.9           153.0

Income taxes                                   (38.6)          (35.8)

Income from continuing operations               79.3           117.2

Income (loss) from discontinued
 operations, net of tax                            -            (4.3)


Net income                              $       79.3    $      112.9



Basic earnings per share:

 Income from continuing operations      $       0.24    $       0.36


 Income (loss) from discontinued
  operations                                       -           (0.02)

Net income                              $       0.24    $       0.34


Diluted earnings per share:

 Income from continuing operations      $       0.24    $       0.36


 Income (loss) from discontinued
  operations                                       -           (0.02)

Net income                              $       0.24    $       0.34



Depreciation, depletion and
 amortization expense, excluding
 goodwill amortization                  $      282.8    $      375.9

Goodwill amortization                           22.4            22.7

Total depreciation, depletion
 and amortization expense               $      305.2    $      398.6



Capital expenditures                    $      316.4    $      382.1


Shares outstanding, basic (millions)           330.2           327.4

Shares outstanding, diluted (millions)         331.7           328.6


Earnings before interest expense and
taxes (EBIT)1                           $      166.3    $      183.3



Earnings before interest expense,
taxes, depreciation, depletion and
amortization (EBITDA)1                  $      471.5    $      581.9


    (1) Computed excluding non-operational items.
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    Forward-Looking Statements

This press release and its attachments contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "expected and similar expressions are intended to identify forward-looking statements. Baker Hughes' expectation regarding the date of the closing of the formation of its Western GECO venture with Schlumberger Limited is only its forecast regarding this matter. This forecasted date may be different from the actual date of closing, which is dependent on the following events: completion of a definitive agreement between Baker Hughes and Schlumberger, the attainment of all requisite regulatory approvals under applicable U.S. and foreign law for the transaction to be completed, the lapse of all regulatory waiting periods under applicable U.S. and foreign law for the transaction to close, approval of the Board of Directors of both companies of the final definitive agreement and the satisfaction or waiver of all conditions to closing that may be ultimately agreed upon in definitive documentation between the parties. Baker Hughes' expectations regarding its outlook for its business, improved profitability and growth in the business and the oil and gas industry are only its forecasts regarding these matters. These forecasts may be substantially different from actual results, which are affected by the following factors: the effect of competition; the level of petroleum industry exploration and production expenditures; world economic conditions, including (without limitation) the ability of Asian countries to grow their respective economies; price of, and the demand for, crude oil and natural gas; drilling activity; weather; the legislative environment in the United States and other countries; OPEC policy; conflict in the Middle East and other major petroleum-producing or consuming regions, the development of technology that lowers overall finding and development costs and the condition of the capital and equity markets and the timing of any of the foregoing.

Baker Hughes is a leading supplier of reservoir-centered products, services and systems to the worldwide oil and gas industry.

NOT INTENDED FOR BENEFICIAL HOLDERS -0-

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                Attachment 1 - Operational Highlights

              Operational Highlights for the three months
                         ended June 30, 2000.

                            Year over Year
            (for the 3 months ended June 30, 2000 and 1999)
                               UNAUDITED

                                                 Operating Profit
                           Revenue                  Before Tax
                        ($ millions)               ($ millions)
                  June 2000      June 1999    June 2000   June 1999

Oilfield
 Operations     $   1,174.5    $   1,110.8    $   129.1    $   98.9
Corporate and
 net interest             -              -        (67.5)      (63.7)
Non-operational
 items(1)                 -              -         28.5        48.6

Total           $   1,174.5    $   1,110.8    $    90.1    $   83.8


                              Sequential
       (for the 3 months ended June 30, 2000 and March 31, 2000)
                               UNAUDITED

                                                Operating Profit
                           Revenue                 Before Tax
                        ($ millions)              ($ millions)
                  June 2000     March 2000    June 2000  March 2000

Oilfield
 Operations     $   1,174.5    $   1,157.3    $   129.1    $   91.6
Corporate and
 net interest             -              -        (67.5)      (70.9)
Non-operational
 items(1)                 -              -         28.5         7.1

Total           $   1,174.5    $   1,157.3    $    90.1    $   27.8

(1) See attachment 3 for a reconciliation of the impact of
    non-operational items.
*T

    Oilfield Operations

Results for the June 2000 quarter, compared to the June 1999 quarter and March 2000 quarter, reflect the impact of increased worldwide exploration and production spending, particularly in North America.

Revenue for the June 2000 quarter increased 6% compared to the June 1999 quarter and increased 2% compared to the March 2000 quarter. Revenue for every division, except Western Geophysical, increased in the June 2000 quarter compared to the June 1999 quarter. Excluding Western Geophysical, revenues for the June 2000 quarter improved 14% compared to the June 1999 quarter and improved 5% compared to the March 2000 quarter. The largest revenue increases in the June 2000 quarter compared to the June 1999 quarter occurred at Centrilift, Hughes Christensen, Baker Atlas and E&P Solutions - all of which showed greater than a 20% increase. E&P Solutions, Centrilift, Hughes Christensen, Baker Petrolite and Baker Hughes INTEQ all showed sequential improvement, comparing revenues for the June 2000 quarter to the March 2000 quarter, while Baker Atlas and Baker Oil Tools revenues were flat and Western Geophysical revenues declined. At Western Geophysical proprietary acquisition revenues weakened and multi-client revenues were flat for the June 2000 quarter compared to the March 2000 quarter.

Oilfield operating profit before tax for the June 2000 quarter improved 31% compared to the June 1999 quarter. Excluding Western Geophysical, oilfield operating profit before tax for the June 2000 quarter improved 48% compared to the June 1999. Hughes Christensen, Centrilift, Baker Atlas and E&P Solutions all had operating profit before tax margins for the June 2000 quarter that were greater than the margins reported one year ago. Comparing the June 2000 quarter to the June 1999 quarter, incremental operating profit before tax margins were 41%. Both Centrilift's and Hughes Christensen's net operating profit after tax exceeded their cost of capital in the June 2000 quarter. Centrilift, in particular, reported strong results in the quarter matching 1998 peak operating levels in revenue and operating profit.

Oilfield operating profit before tax for the June 2000 quarter improved 41% compared to the March 2000 quarter and excluding Western Geophysical, oilfield operating profit before tax for the June 2000 quarter improved 26% compared to the March 2000 quarter. Sequentially, Hughes Christensen's operating profit before tax margin remained flat while every other division's operating profit before tax margin improved in the June 2000 quarter compared to the March 2000 quarter. Overall pricing in the June 2000 quarter improved modestly compared to the March 2000 quarter. The pricing improvement was primarily in the company's North American operations, excluding Western Geophysical. At Western Geophysical operating profit margins improved for the June 2000 quarter compared to the March 2000 quarter reflecting a $15.6 million adjustment to the multi-client data library. Excluding the impact of this adjustment, operating profit at Western Geophysical remained at near breakeven levels.

The newly expanded Houston Technology Center was opened in June 2000. A workplace for more that 1500 Baker Hughes employees, the 90-acre campus includes the headquarters of both Baker Atlas and Baker Hughes INTEQ as well as a combined research and development, engineering and manufacturing site for the two divisions. The center is expected to help deliver increased value to clients and build a closer working relationship between the two divisions.

Corporate Expense

Corporate expense, including net interest expense, was $67.5 million for the three months ended June 30, 2000, compared to $63.7 million for the three months ended June 30, 1999 and $70.9 million for the three months ended March 31, 2000. The increase for the June 2000 quarter compared to the June 1999 quarter was primarily due to increased net interest expense and the decrease in corporate expense for the June 2000 quarter compared to the March 2000 quarter was primarily related to severance expense incurred in the March 2000 quarter. -0-

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Attachment 2 - Geographic Highlights

The table sets forth the geographic distribution of oilfield revenue changes and the BHI rig count changes by geographic region.

      UNAUDITED                3 months ended
                            June 00 vs. June 99
  Geographic Region          Revenue       Rigs
--------------------       ---------------------
North America                    13%        69%

Latin America                     7%        15%

Europe                          -13%       -13%

Middle East                       0%         9%

Asia Pacific                    -10%       -11%

Africa                           21%        30%

Outside North America             1%         4%

Worldwide Total                   6%        37%
*T

Revenue by geographic area reflects the strength of the recovery in North America, which accounted for 44% of Baker Hughes' revenue in the second quarter of 2000.

Revenue from North America, Latin America and Africa showed improvement in year over year comparisons while Middle East revenues were flat and Europe and Asia Pacific regions declined year over year. Western Hemisphere revenues for the June 2000 quarter improved 12% compared to the June 1999 quarter. Excluding Western Geophysical, Western Hemisphere revenues for the June 2000 quarter increased 23% compared to the June 1999 quarter.

Sequentially, comparing results for the June 2000 quarter to the March 2000 quarter, Western Hemisphere revenues were down 1% as increased activity in the US almost offset weaker revenues from Latin America and the impact of the seasonal reduction of oil and gas drilling activity in Canada. Excluding Western Geophysical, Western Hemisphere revenues for the June 2000 quarter were improved 4% compared to the March 2000 quarter as weaker results from Canada were offset by improved revenues in the US and Latin America. Eastern Hemisphere revenues improved 5% for the June 2000 quarter compared to the March 2000 quarter as revenues increases in Europe, Middle East, Africa and CIS regions offset declines in the Asia Pacific region. Excluding Western Geophysical, Eastern Hemisphere revenues for the June 2000 quarter were improved 7% compared to the March 2000 quarter. -0-

*T

Attachment 3 - Impact of Non-Operational Items

The following schedules detail the non-recurring items the company recognized in the three month periods ended June 30, 2000, March 31, 2000 and June 30, 1999.

                Impact of Non-Operational Items for the
                   Three Months Ended June 30, 2000

                               UNAUDITED

                                                           Diluted
                            Profit               Profit    earnings
                          before tax    Tax     after tax  per share
                          (millions) (millions) (millions) ($/share)

As reported income from
 continuing operations
 (including impact of
 non-operational item)      $   90.1  $   (29.2)  $   60.9  $   0.18

Less:
 Sale of MPD unit of
 Hughes Christensen
 resulting in an
 unusual credit                 (5.9)       2.1       (3.8)    (0.01)

Net adjustments to
 nonrecurring charge
 accruals from prior
 years                         (12.5)       3.0       (9.5)    (0.03)


Gain on trading
 securities                    (10.1)       3.5       (6.6)    (0.02)

Operating results,
 excluding impact of
 non-operational item       $   61.6  $   (20.6)  $   41.0  $   0.12


                Impact of Non-Operational Items for the
                   Three Months Ended March 31, 2000

                               UNAUDITED

                                                           Diluted
                            Profit               Profit    earnings
                          before tax    Tax     after tax  per share
                          (millions) (millions) (millions) ($/share)

As reported income from
 continuing operations
 (including impact of
 non-operational item)      $   27.8   $   (9.4)  $   18.4  $   0.06

Less:
 Gain on trading
 securities                     (7.1)       2.5       (4.6)    (0.02)

Operating results,
 excluding impact of
 non-operational item       $   20.7   $   (6.9)  $   13.8  $   0.04


                Impact of Non-Operational Items for the
                   Three Months Ended June 30, 1999

                               UNAUDITED

                                                           Diluted
                            Profit               Profit    earnings
                          before tax    Tax     after tax  per share
                          (millions) (millions) (millions) ($/share)

As reported income from
 continuing operations
 (including impact of
 non-operational items)     $   83.8   $  (12.4)  $   71.4  $   0.22

Less:
 Net gain on the sale
 of a Houston property
 resulting in an
 unusual credit.               (33.3)      12.3      (21.0)    (0.06)

 IRS settlement of FY94
 and FY95 audits
 reflected in income
 taxes                                    (18.1)    (18.1)     (0.06)

 Net gain on the sale
 of certain net assets
 related to a joint
 venture reflected in
 SG&A expenses                 (15.3)       5.8       (9.5)    (0.03)

Operating results from
 continuing operations
 (excluding impact of
 non-operational items)
                            $   35.2   $  (12.4)  $   22.8  $   0.07


                             Attachment 4
                       Baker Hughes Incorporated
                    Selected Financial Information
        (all figures are in millions except per share amounts)


                                 3 months ended              12 months
                                                              ended
                     3/31/98   6/30/98   9/30/98   12/31/98  12/31/98

Revenues           $ 1,523.9 $ 1,532.4 $ 1,457.0  $ 1,307.3 $ 5,820.6

 Costs of revenues   1,145.0   1,158.8   1,410.9    1,031.0   4,745.7
 Selling,
  general and
  administrative       187.1     165.2     262.3      163.4     778.0
 Merger related
  costs                    -         -     200.3       17.2     217.5
 Unusual charge
  (credit)                 -         -     156.9       39.7     196.6
Total costs and
 expenses            1,332.1   1,324.0   2,030.4    1,251.3   5,937.8

Operating income
 (loss)                191.8     208.4    (573.4)      56.0    (117.2)
Interest expense       (29.6)    (35.5)    (38.8)     (38.8)   (142.7)
Interest income          1.7       0.3       1.0        0.7       3.7
Unrealized gain on
 trading
 securities                -         -         -          -         -

Income (loss) from
 continuing
 operations before
 income taxes          163.9     173.2    (611.2)      17.9    (256.2)
Income tax
 (provision)
 benefit               (58.1)    (59.9)    103.3      (10.0)    (24.7)
Income (loss) from
 continuing
 operations            105.8     113.3    (507.9)       7.9    (280.9)
Income (loss) from
 discontinued
 operations, net
 of tax                  6.1       5.0     (25.7)      (0.6)    (15.2)
Net income (loss)    $ 111.9   $ 118.3  $ (533.6)     $ 7.3  $ (296.1)


Basic                  317.2     317.9     323.0      326.9     321.7
Diluted                329.3     330.4     323.0      327.3     321.7

Diluted income
 addback                 1.7       1.6         -          -         -


Basic earnings
 per share:
  Income (loss)
   from continuing
   operations         $ 0.33    $ 0.36   $ (1.57)    $ 0.02   $ (0.87)
  Discontinued
   operations, net
   of tax             $ 0.02    $ 0.01   $ (0.08)       $ -   $ (0.05)
Net income (loss)     $ 0.35    $ 0.37   $ (1.65)    $ 0.02   $ (0.92)

Diluted earnings
 per share:
  Income (loss)
   from continuing
   operations         $ 0.33    $ 0.35   $ (1.57)    $ 0.02   $ (0.87)
  Discontinued
   operations, net
   of tax             $ 0.02    $ 0.01   $ (0.08)       $ -   $ (0.05)
Net income (loss)     $ 0.35    $ 0.36   $ (1.65)    $ 0.02   $ (0.92)

Capital
 expenditures        $ 302.5   $ 349.2   $ 307.9    $ 341.4 $ 1,301.0
Depreciation,
 depletion and
 amortization        $ 157.0   $ 188.6   $ 200.0    $ 199.8   $ 745.4

Debt               $ 1,932.1 $ 2,437.4 $ 2,689.4  $ 2,770.7 $ 2,770.7

Equity             $ 3,579.5 $ 3,691.7 $ 3,199.7  $ 3,165.1 $ 3,165.1

 Debt / Equity            54%       66%       84%        88%       88%


 Cost of revenues  $       - $       - $   286.6   $      - $   286.6
 Selling,
  general and
  administrative           -         -      68.7          -      68.7
 Merger-related
  costs                    -         -     200.3       17.2     217.5
 Unusual charge
  (credit)                 -         -     156.9       39.7     196.6
 Gain on trading
  securities               -         -         -          -        -

Total unusual and
 non-recurring
 charges (credits),
 pre-tax                   -         -     712.5       56.9     769.4
Income tax
 (provision)
 benefit for total
 unusual and               -         -    (139.9)     (18.1)   (158.0)
 non-recurring
 charges (credits)
Total unusual and
 non-recurring
 charges (credits),
 after-tax          $      -       $ -   $ 572.6     $ 38.8   $ 611.4




                                 3 months ended              12 months
                                                               ended
                     3/31/99   6/30/99  09/30/99   12/31/99  12/31/99

Revenues           $ 1,214.4 $ 1,110.8 $ 1,117.6  $ 1,103.9 $ 4,546.7

 Costs of revenues     937.1     870.3     896.4      973.9   3,677.7
 Selling,
  general and
  administrative       171.6     151.1     162.6      169.7     655.0
 Merger related
  costs                    -         -         -       (1.6)     (1.6)
 Unusual charge
  (credit)                 -     (33.3)    (6.2)       48.3       8.8
Total costs and
 expenses            1,108.7     988.1   1,052.8    1,190.3   4,339.9

Operating income
 (loss)                105.7     122.7      64.8      (86.4)    206.8
Interest expense       (38.7)    (40.2)    (40.1)     (40.0)   (159.0)
Interest income          2.2       1.3       1.2        0.3       5.0
Unrealized gain on
 trading
 securities                -         -         -       31.5      31.5

Income (loss) from
 continuing
 operations before
 income taxes           69.2      83.8      25.9      (94.6)     84.3
Income tax
 (provision)
 benefit               (23.4)    (12.4)     (9.3)      13.1     (32.0)
Income (loss) from
 continuing
 operations             45.8      71.4      16.6      (81.5)     52.3
Income (loss) from
 discontinued
 operations, net
 of tax                 (1.4)     (2.9)     (3.4)     (11.3)    (19.0)
Net income (loss)     $ 44.4    $ 68.5    $ 13.2    $ (92.8)   $ 33.3


Basic                  327.2     327.5     328.8      329.2     328.2
Diluted                327.5     329.6     331.5      329.2     329.9

Diluted income
 addback                   -         -         -          -         -


Basic earnings per
 share:
  Income (loss)
   from continuing
   operations         $ 0.14    $ 0.22    $ 0.05    $ (0.25)   $ 0.16
  Discontinued
   operations, net
   of tax                $ -   $ (0.01)  $ (0.01)   $ (0.03)  $ (0.06)
  Net income
   (loss)             $ 0.14    $ 0.21    $ 0.04    $ (0.28)   $ 0.10
Diluted earnings
 per share:
  Income (loss)
   from continuing
   operations         $ 0.14    $ 0.22    $ 0.05    $ (0.25)   $ 0.16
  Discontinued
   operations, net
   of tax                $ -   $ (0.01)  $ (0.01)   $ (0.03)  $ (0.06)
  Net income
   (loss)             $ 0.14    $ 0.21    $ 0.04    $ (0.28)   $ 0.10

Capital
 expenditures        $ 221.3   $ 160.8   $ 143.4    $ 108.3   $ 633.8
Depreciation,
 depletion and
 amortization        $ 200.6   $ 198.0   $ 202.0    $ 177.8   $ 778.4

Debt               $ 2,892.1 $ 2,882.8 $ 2,885.8  $ 2,814.1 $ 2,814.1
Equity             $ 3,159.6 $ 3,213.7 $ 3,209.7  $ 3,071.1 $ 3,071.1
 Debt / Equity            92%       90%       90%        92%       92%


 Cost of revenues        $ -       $ -       $ -     $ 72.1    $ 72.1
 Selling,
  general and
  administrative           -     (15.3)        -       (5.0)    (20.3)
 Merger-related
  costs                    -         -         -       (1.6)     (1.6)
 Unusual charge
  (credit)                 -     (33.3)     (6.2)      48.3       8.8
 Gain on trading
  securities               -         -         -      (31.5)    (31.5)

Total unusual and
 non-recurring
 charges (credits),
 pre-tax                   -     (48.6)     (6.2)      82.3      27.5
Income tax
 (provision)
 benefit for total
 unusual and               -      18.1       2.3       (9.1)     11.3
 non-recurring
 charges (credits)
Total unusual and
 non-recurring
 charges (credits),
 after-tax               $ -   $ (30.5)   $ (3.9)    $ 73.2    $ 38.8




                                 3 months ended              12 months
                                                               ended
                     3/31/00   6/30/00   9/30/00   12/31/00  12/31/00

Revenues           $ 1,157.3 $ 1,174.5

 Costs of revenues     920.6     904.7
 Selling,
  general and
  administrative       174.4     166.8
 Merger related
  costs                    -         -
 Unusual charge
  (credit)                 -     (18.4)
Total costs and
 expenses            1,095.0   1,053.1

Operating income
 (loss)                 62.3     121.4
Interest expense       (42.1)    (41.9)
Interest income          0.5       0.5
Unrealized gain on
 trading
 securities              7.1      10.1

Income (loss) from
 continuing
 operations before
 income taxes           27.8      90.1
Income tax
 (provision)
 benefit                (9.4)    (29.2)
Income (loss) from
 continuing
 operations             18.4      60.9
Income (loss) from
 discontinued
 operations, net
 of tax                    -         -
Net income (loss)     $ 18.4    $ 60.9


Basic                  329.9     330.5
Diluted                330.6     332.8

Diluted income
 addback                   -         -


Basic earnings per
 share:
  Income (loss)
   from continuing
   operations         $ 0.06    $ 0.18
  Discontinued
   operations, net
   of tax                $ -       $ -
  Net income
   (loss)             $ 0.06    $ 0.18
Diluted earnings
 per share:
  Income (loss)
   from continuing
   operations         $ 0.06    $ 0.18
  Discontinued
   operations, net
   of tax                $ -       $ -
  Net income
   (loss)             $ 0.06    $ 0.18

Capital
 expenditures        $ 195.7   $ 120.9
Depreciation,
 depletion and
 amortization        $ 165.0   $ 140.2

Debt               $ 2,908.3
Equity             $ 3,041.5
 Debt / Equity            96%


 Cost of revenues        $ -       $ -
 Selling,
  general and
  administrative           -         -
 Merger-related
  costs                    -         -
 Unusual charge
  (credit)                 -     (18.4)
 Gain on trading
  securities            (7.1)    (10.1)

Total unusual and
 non-recurring
 charges (credits),
 pre-tax                (7.1)    (28.5)
Income tax
 (provision)
 benefit for total
 unusual and             2.5       8.6
 non-recurring
 charges (credits)
Total unusual and
 non-recurring
 charges (credits),
 after-tax            $ (4.6)  $ (19.9)

    NOTES:

    (1) Quarterly information is unaudid

    (2) The information presented abovehould be read in conjunction
        with the company's SEC Filings  forms 10-Q, 10-Q(A), 10-K
        and 10-K(A) for the periods prented.
*T


    CONTACT: Baker Hughes Incorporated, Houston
             Gary Flaharty, 713/439-8039
             gary.flaharty@bakerhughes.com