How the heck is Halliburton managing to LOSE money?

[Sparkly]

"Halliburton Warns of Additional Loss"

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20040629/bs_nm/energy_halliburton_dc

How is Halliburton losing millions of dollars after we taxpayers have pumped BILLIONS of dollars into their profits through Iraq contracts?

[LittleApple81]

1. Creative accounting. Creative thievery. Creative bribery???? n/t

[JM]

3. Paying a small fortune to contractors

in Iraq to perform the work in a war zone where they could be kidnapped and killed.

I am sure they did not anticipate the security issue. Dumbasses...

They have to be cost-shifting so they don't show they fucked up in Iraq.

JM

[hlthe2b]

2. Great shell game to hide their assets

less any awkward COngressional investigation actually be initiated...

[gratuitous]

4. Ha, ha, Sucker!

Sorry Sparkly, I don't mean you. I mean all the rubes who will see that story and actually think Halliburton is losing money. Halliburton might as well be running the Government Printing Office, running off its very own sheets of hundred dollar bills. They're having to capitalize two hypothetical debts totaling nearly a billion dollars in order to try to show a "loss" of $200 million.

The practical upshot is that Halliburton shows a paper loss (even though it doesn't pay out a dime), doesn't pay any taxes (may in fact be entitled to a refund), and gets to cry poor all the way to the Cayman Islands.

[tinanator]

7. just like Enron

lets not play stupid and into their hands. Making money hand over fist only leads to bankruptcy when you want to keep ill gotten goods. The real story of Enrons "bankruptcy" is not about to be told in our nationalized media. Take the money Enron down to the Caymans widdit.

[kikiek]

5. I think that asbestos suit has something to do with it.

Whether it is to show no profit to protect themselves or real who knows. I bet the CEO is making a pretty penny still. Look at the "retirement" package Cheney got after just what 5 years?

[TahitiNut]

12. David Lesar (Chairman, Pres, CEO) was paid $4.6M in '03

Obscene.

David J. Lesar was appointed Chairman of the Board, President and Chief Executive Officer of the Company, since 2000; President of the Company, 1997-2000; Executive Vice President and Chief Financial Officer, 1995-1997; joined Halliburton Company Board in 2000; Director of Lyondell Chemical Company and Mirant Corporation.


http://yahoo.investor.reuters.com/OfficersComp.aspx?target=executiveofficers/basiccompensation&ticker=HAL

[mstrsplinter326]

6. BushCo realized a long time a go

constantly changing company names through buy outs and closings that the public could be appeased. While, since BushCo has or will have a controlling hand in the subcontractors and since even when companies tank the execs get paid, they are not losing money. Like when Monsanto's name started to be spread around as the premier genfoods manufacturer, magically they are purchased and their name is nearly gone, and cannot be sucessfully used in the vocabulary of the average american who doesn't have the time to check up on political manuverings everyday.

[readmylips]

8. That's only on ONE Project, not the whole Halliburton.....

Halliburton, like the cheney, is all over the world. They actually don't lose anything, we tax payers pay for it. Most Halliburton projects are off shore but still get tax payer welfare.

American people are suckers again.

[SoCalDem]

9. Companies "know ways" to lose money on paper..

They always need "write-off" to avoid paying the pittance our country charges them in taxes...

[TahitiNut]

10. Money Laundry (i.e. "Holding Company")

A cursory examination of their balance sheets and income statements suggests that they're making extraordinary gross profits (over $1B in '03) and pillaging it in post-EBITDA loads. (In particular, I note the $1.15B charge for 'discontinued operations.') Insofar as operational cash flow, without examining PO's one can only speculate about the capitalization of such spending but, since PP&E and other fixed and long-term assets don't reflect growth, I'd say the bulk of their PO spending is in the enrichment of private interests with little or no potential for public disclosure.

As a $16B+ ($20B+ in '04) company, HAL is "Big Time."

Some observations...

• From '02 to '03, total revenues increased by over 30% ($12.5B to $16.3B) but GSA went down. This would suggest that their increased revenues had virtually nothing to do with their own accountable internal efforts at marketing and administration. (Well, D'oh!?!)
• Their GSA to Revenue ratio is remarkably low at about 2%, even for a holding company. This would indicate to me that their "rainmakers" are other than internal, and that they've externalized (at taxpayer expense?) their administrative costs.
• They book a huge increase in receivables along with a healthy increase in cash and cash equivalents. But this is remarkably offset by an enormous increase in 'Other Current Liabilities' and an equally enormous increase in 'Long Term Debt' (offset by a reduction in 'Other Liabilities'). I'd have to closely examine their Annual Report and those of their subsidiaries to see what's going on here, but it smells like a really big play in interlocking balance sheets, possibly with minority interest subsidiaries, to me. Their disclosure of Financing Activities (in cash flow) bears this out, imho.

Disclaimer: I'm neither an accountant nor lawyer.

[seabeyond]

11. it was a bad business going bankrupt before the war

with tons more money to lose now makes no difference in survival.

have watched with other companies, they see the money flowing in and say we are saved, yet they havent taken care of the problem, and sink anyway, and much quicker it seems

[Atman]

13. LOSSES come OFF your taxes

Not that I can believe Halliburton ever pays a penny of US taxes, but hey...accounting wise, it is always good to show a loss to the gubmit, but show a big gain to the shareholders. They have the billion dollar accountants to pull it off. Halliburton won't "lose" a penny...all their receivables will be gauranteed by you and me and the rest of the people reading this board. But not a penny out of Dick's pocket, you can be sure.

[leftofthedial]

14. clever accounting

fraud

incompetence