Weatherford -3.8% as Q4, FY 2014 earnings seen well below consensus

Weatherford (WFT) -3.8% premarket after issuing downside guidance for Q4, seeing EPS of $0.05-$0.08 vs. analyst consensus estimate, and for FY 2014, seeing EPS of $1.10-$1.20 vs. $1.22 consensus.

WFT blames the shortfall on capital discipline driven activity reductions in Latin America, operational disruptions in the Middle East, severe weather which hurt activity in North America and the North Sea, and a ~50% effective tax rate which added $0.03 to Q4 tax expense.

Expects to cut 7K employees, ~10% of its workforce, in H1 of this year.

Net debt was reduced by nearly $700M, reflecting strong operating cash flow and the partial monetization of the previously announced sale of the Borets joint venture.

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