Earnings Warning Issued by Halliburton

Halliburton Co. warned that second-quarter earnings would fall well below Wall Street expectations because of losses from a Brazilian oil project and said it might need to increase its payout for asbestos damages.

Halliburton said additional losses of about $104 million, or 24 cents a share, from the Barracuda-Caratinga offshore project would reduce its quarterly earnings to as little as 2 cents a share. That compares with analysts’ average forecast of 25 cents a share for the No. 2 oil field services company, according to Reuters Research.

Halliburton said it expected that the cost of settling asbestos class-action litigation would modestly exceed previous estimates of $2.78 billion. It cited an increase in the estimated number of claims.

Shares of Halliburton fell $1.27 to $23.16 on the NYSE.

From Reuters