What is the main purpose of this 8-K filing?

This 8-K filing serves two main purposes: to report on SLB's financial results for the first quarter of 2006 and to announce a significant transaction where SLB is acquiring Baker Hughes' 30% stake in WesternGeco.

What is WesternGeco and why is SLB acquiring the remaining stake?

WesternGeco is a joint venture primarily involved in seismic exploration and data acquisition. By acquiring Baker Hughes' 30% interest for $2.4 billion, SLB will gain full ownership of this business, likely aiming for greater strategic control and integration of its seismic operations.

What are the key non-GAAP financial measures SLB is reporting?

SLB is reporting Net Debt, Income from continuing operations before charges and credits, Diluted Earnings Per Share before charges and credits, Pretax Return on Sales before charges and credits, After-tax before minority interest Return on Sales, Effective Tax Rate before charges and credits, and Return on Capital Employed (ROCE). Management believes these measures offer a more insightful view of ongoing operational performance.

When is the WesternGeco transaction expected to close?

The transaction is expected to close on April 28, 2006, provided that all customary closing conditions are met.

SLB 8-K: Earnings & Results & Regulation FD

Summary

SLB Limited/NV (SLB) filed an 8-K on April 21, 2006, reporting on its first quarter 2006 results and a significant acquisition. The company announced its intention to acquire Baker Hughes Incorporated's 30% stake in their joint venture, WesternGeco, for $2.4 billion in cash. This move signifies SLB's intent to consolidate full ownership of its seismic exploration and data acquisition business. The filing also detailed non-GAAP financial measures that management believes provide a clearer view of operational performance and financial health. These include net debt, income and EPS before charges and credits, and Return on Capital Employed (ROCE). Investors should note that these non-GAAP figures are presented alongside GAAP results and should be considered as supplementary information.

Key Highlights

1SLB is acquiring Baker Hughes' 30% interest in WesternGeco for $2.4 billion cash.
2The acquisition is expected to close by April 28, 2006, subject to closing conditions.
3The company reported its First Quarter 2006 financial results.
4SLB is utilizing and reporting specific non-GAAP financial measures to provide enhanced operational insights.
5Key non-GAAP measures include Net Debt, Income/EPS before charges and credits, and Return on Capital Employed (ROCE).
6These non-GAAP measures are intended to offer a better period-over-period comparison and identify operating trends.
7The acquired stake in WesternGeco will likely result in SLB gaining full control of this significant business segment.

SLB LIMITED/NV 8-K Report, Financial Results (Apr 21, 2006)

Summary

Key Highlights

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