Boston, MA 04/25/2014 (wallstreetpr) – One of the biggest providers of services and equipment used in the production, drilling and allied process across the world Weatherford International Ltd (NYSE:WFT) is grappling with losses. Recently Weatherford announced its 1Q2014 results, which turned out to be below expectations leaving the company to critically re-think about its upcoming strategies to gear up for coming years.
Results of 1Q2014
Weatherford International Ltd (NYSE:WFT) announced its 1Q2014 results, which came as a mixed bag for the company and its investors. The company experimented with a series of changes and plans before the release of the results. From the improvement of operating income margins by 115 basis points to a reduction of the cost base of the core business leading to completion of 56% of planned reduction till now. The quarter also saw shutting down of almost 20 underperforming operating units and entry into deals related to selling of pipeline and specialty service for a net consideration of $250 million.
The results registered the revenue as $3.60 billion and net loss as $41 million and loss per diluted share as $0.05. The company was taxed approximately $140 million which included tax related to severance & exit costs, professional fee, legacy cost, etc. Net income on a non-GAAP basis equaled to $99 million. The company presented its outlook and strategies for future to enjoy an upward lift in the coming quarters.
Weatherford International Ltd (NYSE:WFT) is all set to focus on the organization of its core businesses and striving to ensure efficiency in the cost bases. It is also planning to divest its non-core businesses and reduction of net debt. Weatherford in the coming financial year is expecting growth in overall margins and core businesses. The company is re-strategizing for better results.
Conference Call (1Q2014)
Weatherford International Ltd (NYSE:WFT) International Earnings Conference call is scheduled to take place today at 8:30 am Eastern to discuss the recently announced results in details.