What is the main purpose of Baker Hughes' recent organizational change?

The main purpose of the organizational change is to simplify operations, enhance profitability, and better position the company to adapt to quickly changing energy markets. By consolidating into two core segments (OFSE and IET), Baker Hughes aims to improve operational processes and economies of scale.

What are the new operating segments for Baker Hughes?

Effective October 1, 2022, Baker Hughes reorganized into two main operating and reportable segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET).

Where can investors find historical financial data for the new segment structure?

Unaudited historical consolidated financial information based on the new segment reporting structure, along with OFSE revenue by geographic region, is provided as Exhibit 99.1 to this Current Report on Form 8-K.

Are the financial figures presented in the supplemental information prepared under GAAP?

The supplemental financial information includes non-GAAP measures, such as Segment EBITDA. While the company believes these measures are useful for investors, they should not be viewed as a substitute for reported results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures presented by other companies.

BKR 8-K SEC Disclosure — Nov 18, 2022

Summary

Baker Hughes Co. (BKR) announced a significant organizational restructuring effective October 1, 2022, consolidating its previous four operating segments into two new reportable segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). This move aims to simplify operations, enhance profitability, and better align with evolving energy market dynamics. The company believes this new structure will allow each segment to adapt more effectively and improve operational processes and economies of scale by removing product company layers. This report also indicates that unaudited historical consolidated financial information under the new segment structure, along with OFSE revenue by geographic region, has been provided as an exhibit. Investors should note that this supplementary financial information includes non-GAAP measures, such as Segment EBITDA, which are presented as supplemental performance indicators. The company emphasizes that these non-GAAP measures should be considered alongside, not as a replacement for, GAAP-reported results.

Key Highlights

1Baker Hughes has reorganized into two primary operating segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET), effective October 1, 2022.
2The reorganization consolidates previous segments, merging Oilfield Services with Oilfield Equipment into OFSE, and Turbomachinery & Process Solutions with Digital Solutions into IET.
3The stated goals of the restructuring include simplifying operations, enhancing profitability, and improving adaptability to changing energy markets.
4The company expects the new structure to upgrade key operational processes and enhance economies of scale.
5Unaudited historical financial information reflecting the new segment structure and product lines has been filed as an exhibit.
6OFSE revenue by geographic region is also provided in the supplementary financial information.
7The provided financial supplement includes non-GAAP measures, such as Segment EBITDA, which are presented to offer additional insights into performance.

Baker Hughes Co 8-K Report, Corporate Update (Nov 18, 2022)

Summary

Key Highlights

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