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During 4Q17, $HAL recorded an $882MM non-cash charge, primarily as a result of a preliminary provision for net impact of tax reform. Given current U.S. tax attributes, $HAL does not expect to pay any cash tax on deemed repatriation tax obligations. $HAL sees 2018 and 1Q effective tax rate to be about 23% based on expected geographic earnings mix.
$HAL said tax reform bill is a big positive and expects this to lower effective tax rate percentage from the high-20s to 21-23% range, reflecting the new U.S. corporate rate plus state and local taxes along with geographic earnings mix. This will positively impact future earnings and help level playing field with foreign domicile competitors.
$HAL's International revenue for 4Q17 increased 11% sequentially to $2.5Bil. This resulted primarily from increased activity across multiple product services lines in Latin America, and increases in drilling and stimulation activity in the Eastern Hemisphere.
$HAL's North America revenue for 4Q17 rose 7% sequentially to $3.4Bil. This was driven primarily by higher utilization and pricing throughout the U.S. land sector in the majority of product service lines, primarily pressure pumping, as well as higher drilling activity and completion tool sales in the Gulf of Mexico.
$HAL's Drilling and Evaluation revenue for 4Q17 grew 12% to $2.1Bil from last quarter and operating income climbed 62% to $291MM. These increases were primarily due to increased drilling activity in the Middle East and North America and higher software sales and services in Latin America.
$HAL's Completion and Production revenue for 4Q17 rose 8% to $3.8Bil from last quarter. In the U.S. land sector, higher pressure pumping activity and pricing led to higher revenue while higher costs and seasonality hindered profitability.
$HAL reported a wider loss in 4Q17 due to charges related to U.S. tax reform and Venezuela receivables. Net loss widened to $824MM or $0.94 per share from $149MM or $0.17 per share last year. Revenue grew to $5.94Bil from $4.02Bil. Adjusted EPS from continuing operations jumped to $0.53 from $0.04.
$AES agreed to sell its equity interest Masin-AES Pte. to SMC Global Power Holdings. SMC Global Power is also purchasing the remaining 49% equity interest in the same assets, held by Electricity Generating Public Co. for $850MM. The transaction has a total enterprise value of about $2.4Bil.
Electronics company $MEI has declared a quarterly dividend of $0.11 per share on its common stock, representing a 22% increase versus the previous dividend. The dividend is payable on January 26, 2018, to stockholders of record on January 12, 2018.
Global specialty chemicals industry leader $ALB said it has signed a definitive agreement to sell its polyolefin catalysts and components business to $GRA in cash for approx. $416MM. The organometallics and curatives portions of the Performance Catalysts Solutions business will remain with $ALB. The deal is expected to close during 1Q18.
$MEI updated its FY18 guidance to sales in the range of $880-900MM from $807-827MM, mainly due to incremental sales from acquisitions. The company, however, maintained its FY18 pre-tax income from operations in the range of $114-127MM and EPS in the range of $2.43-2.63.
Developer of custom engineered and application specific products and solutions, $MEI posted a 2.8% fall in 2Q18 profit, driven by higher expenses, lower sales volume in the Interface segment and unfavorable currency impact. Profit fell to $24.2MM or $0.64 per share from $24.9MM or $0.66 a year earlier. Revenue however, jumped 9.9% to $230.1MM.
$SEE said it is implementing a price increase of 2.5-5% for the majority of its Food Care division's products in Europe, Middle East and Africa with the exception of Switzerland and the United Kingdom who received price increases earlier in the year. The increase will be effective Jan. 1, 2018.