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2013 Annual Report 28
28
impacted by the impairment charges associated with the information technology assets and facility closure
discussed previously.
Industrial Services
For Industrial Services, revenue increased 5% and profit before tax increased 3% in 2013 compared to 2012.
The increase in revenue was primarily driven by increased demand for our process and pipeline business. The
increase in profit before tax is due to the revenue increase offset by higher compensation expenses. In 2012,
Industrial Services profit before tax was negatively impacted by the impairment charges associated with information
technology assets and facility closure discussed previously.
2012 Compared to 2011
Year Ended December 31,
2012 2011 $ Change % Change
Revenue:
North America $ 10,836 $ 10,279 $ 557 5%
Latin America 2,399 2,190 209 10%
Europe/Africa/Russia Caspian 3,634 3,372 262 8%
Middle East/Asia Pacific 3,275 2,852 423 15%
Industrial Services 1,217 1,138 79 7%
Total Revenue $ 21,361 $ 19,831 $ 1,530 8%
Year Ended December 31,
2012 2011 $ Change % Change
Profit Before Tax:
North America $ 1,268 $ 1,908 $ (640) (34)%
Latin America 197 223 (26) (12)%
Europe/Africa/Russia Caspian 586 336 250 74 %
Middle East/Asia Pacific 313 310 3 1 %
Industrial Services 131 95 36 38 %
Total Operations 2,495 2,872 (377) (13)%
Corporate and other (513) (533) 20 (4)%
Total Profit Before Tax $ 1,982 $ 2,339 $ (357) (15)%
Revenue for 2012 increased $1.53 billion or 8% compared to 2011 with growth coming from all segments.
Revenue growth in North America was driven by increased demand in the U.S. for product lines other than pressure
pumping and increased activity in deepwater drilling in the Gulf of Mexico. International revenue increased primarily
as a result of increased activity in the Middle East, Latin America and Africa.
Profit before tax from operations for 2012 decreased $377 million or 13% compared to 2011. Despite the
increase in revenue, our profit before tax was significantly impacted by reduced prices, increased raw material
expenses and higher personnel costs in our pressure pumping product line in North America. Additional provisions
for doubtful accounts in Latin America and high operating costs and third party expenses related to new integrated
operations contracts in the Middle East impacted profits in Latin America and MEAP. EARC experienced improved
profitability driven by increased activity throughout the entire segment as well as improved market conditions in
Africa.
In 2012, we incurred charges of $63 million associated with the impairment of certain information technology
assets and the closure of a chemical manufacturing facility in the U.K, as discussed above in our comparison of