Halliburton to Reorganize Business Groups

Halliburton Co., the world’s biggest oil-field services company, announced plans to cut costs and improve profitability at its engineering and construction business. The move, first outlined by new Chief Executive Dave Lesar during an Oct. 24 conference call, will result in a $120-million charge after taxes in the fourth quarter. Despite record energy prices, oil companies have been slow to invest in downstream refining and processing equipment, due partly to the wave of consolidation that has swept the industry. Halliburton Vice President of Investor Relations Guy Marcus said the reorganization would separate the company’s engineering and construction business more cleanly from its oil-field services operations and consolidate it under a single management team. Up till now, Halliburton’s upstream engineering and construction business, which makes oil and gas production equipment, was part of the oil-field services division. Dallas-based Halliburton’s stock closed off 75 cents at $37 on the NYSE.