Baker Reports $254.9-Million Loss : Oil Equipment Manufacturer Forecast Loss in Quarter

Hit hard by the current slump in crude oil prices, Baker International Corp. said Wednesday it had a net loss of $254.9 million during the second quarter of fiscal 1986, contrasted with net earnings of $21 million during the like period last year.

The Orange-based maker of oil field equipment had said three weeks ago that it expected the huge second-quarter loss, caused by write-downs of the value of its assets, but had estimated it at almost $15 million more than reported Wednesday.

For the six months ended March 31, Baker posted a net loss of $238.5 million. During the like period last year, Baker posted net earnings of $38.7 million.

In all, the items written down by Baker totaled $340 million and included domestic property, inventories and about $8 million in foreign currencies that the company is unable to transfer to the United States, Baker officials said Wednesday.

The loss was softened, however, by a one-time gain of $85 million resulting from Baker’s replacement of its pension plan.

Another Loss Expected

Revenue for the quarter fell 9% to $436.8 million from $480.1 million a year ago. For the six months, Baker’s revenue was $879.5 million, down 5% from $928.9 million during the like period of 1985.

Because Baker’s customers are cautious in the face of continued weak oil prices and are holding off on orders, Chairman and Chief Executive E.H. Clark Jr. said, the current quarter will likely produce another loss.

“We are going to try to bust a gut and break even, but my feeling is that we are not going to make it,” Clark said. “But it’ll be a very small loss, and I think we will make it up in the fourth quarter.”