Storms Slash BJ Services' Revenue by Estimated $20MM
BJ Services Co. announced that earnings for the fourth quarter of fiscal 2008, which ended September 30, 2008, are expected to be between $0.55 and $0.57 per diluted share, on revenues of approximately $1.53 billion.
Fourth quarter results were negatively impacted by the hurricane season in the Gulf of Mexico, as hurricanes Ike, Gustav and Edouard all affected activity and operations along the Gulf Coast. The Company incurred property damage and repair costs of approximately one million dollars (pre-tax) related to the storms during the quarter. In addition, the Company estimates that revenues were approximately $18 - 20 million lower than they otherwise would have been, as many customer projects and jobs were delayed or canceled in the wake of the storms. Preliminary results for the quarter also include a non-cash goodwill impairment charge of $6.1 million ($0.02 per diluted share) related to the Company's Russia operations.
The Company and its external auditors are still in the process of reviewing and evaluating the quarterly results. Consequently, actual earnings for the quarter could fall outside the range mentioned above.
The Company will report final fourth quarter fiscal 2008 earnings on Thursday, October 30, 2008.
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