Baker Hughes Updates First Quarter Outlook

Baker Hughes (NYSE: BHI) updated its outlook for the first quarter of 2005, raising its expectations for income from continuing operations per diluted share for the first quarter of 2005 to between $0.52 and $0.53.

The company is continuing to review its preliminary results for the first quarter of 2005 and its outlook for the balance of the year. The company expects to increase its guidance for the full year when it releases additional details on its first quarter of 2005 results and conducts a conference call on April 27, 2005.

Chad C. Deaton, Baker Hughes chairman and chief executive officer, said, "The results for the first quarter of 2005 reflect pricing improvement, favorable geographic and product mix changes, and stronger than expected customer activity. Activity was stronger than we expected in the United States and Russia, weaker than expected in Canada and somewhat above our expectations in the rest of the world. In addition, corporate and other expenses excluding interest expense were less than expected, also contributing to the improved outlook for the first quarter results. We expect market conditions to remain favorable for both additional revenue growth and price improvements over the balance of the year."