Schlumberger To Record Unusual Items in Third Quarter (October 1996)

Schlumberger Limited announced on September 25th that it will record 'unusual items' in the third quarter. With increasing profitability and strong outlook in the US, Schlumberger will recognize a portion of the US income tax benefit related to its US subsidiary's tax loss carry-forwards and all temporary differences. This will result in a credit of $360 million.

A charge of $300 million after tax related primarily to Electricity and Gas Management, and Geco-Prakla. Within the Oilfield Services segment, the much improved results of Geco-Prakla in the quarter are mostly due to the Marine activity. The losses in the Land and Transition Zone businesses have been reduced, but we are convinced that more radical changes, including the write-off of Land goodwill, are required to ensure the long-term financial health of these businesses. Chief Financial Officer Arthur Lindenauer stated, "Over the near term these items will have no material impact on the results of Schlumberger."

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