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Oil Glut Sends Baker International to Third Fiscal Quarter Loss

July 24, 1986|LESLIE BERKMAN

Reeling from declining oil prices, Baker International Corp. said Wednesday that it suffered a third fiscal quarter loss of $11.68 million, despite a one-time gain of $5 million from the canceling of its company pension plan.

By contrast, Orange-based Baker posted a $23-million net profit in the third quarter of 1985.

Revenues for the third quarter, ended June 30, also took a dive, declining 26.2% to $348 million from $471.5 million for the same quarter a year ago.

In the first nine months of Baker's 1986 fiscal year, the company sustained a loss of $250 million, contrasted with net income of $61.7 million a year earlier. Nine-month revenues totaled $1.2 billion, down from $1.4 billion.

The company reported a $254.9 million loss in its second fiscal quarter because of a $340-million writedown of corporate assets.

Ronald Turner, Baker's chief financial officer, said he did not believe that Baker will do "any better" in the current fiscal quarter. The third quarter loss represents the first operating loss in Baker's history.

Turner would not speculate further into the future, saying a lot will depend on whether the OPEC nations can unite to firm up oil prices.

Over the past year, Baker has laid off about 5,000 workers worldwide, leaving a total work force of 15,000.

Turner said he expects more layoffs later this year "because the outlook continues to be extraordinarily bad." He insisted, however, that "Baker isn't in any threat of going out of businesses" because of the company's substantial assets.

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