Baker Hughes (NYSE:BHI) is preparing to announce a significantly lower profit than once anticipated. In advance of its Q4 2013 results announcement, the company has cut its revenue and earnings guidance for the quarter. Its new guidance is for EPS of $0.60 to $0.62 per share, down sharply from the previous estimate of $0.78 to $0.80.
The key reason for the downward adjustment is a shutdown of the company's Iraq operations, which occurred last November following protests by local residents at the firm's facility near the city of Basra. The protests may have been linked to similar demonstrations in the region earlier that month targeting Schlumberger. Baker Hughes' operations were resumed several weeks after the incident.
Additionally, the firm's quarter was hurt by weather delays, which particularly affected operating margins in its North America, Europe, Africa, and Russia Caspian Sea operations.
Baker Hughes is scheduled to report its Q4 figures on Tuesday, January 21.