UPDATE 2-Baker Hughes warns N.Africa unrest, US cold hit Q1

* Sees Q1 profit reduced by 4-7 cents per share

* North Africa, Egypt accounted for 3 pct of 2010 revenue

* Shares dip slightly before bouncing back with oil price
(Adds rivals’ positions paragraphs 4-5, updates shares)

SAN FRANCISCO, March 3 (Reuters) – Baker Hughes Inc
(BHI.N: Quote, Profile, Research), the world’s third-largest oilfield services company,
warned that disruptions from North African turmoil and a North
American cold snap would cut into first-quarter profit.

Baker Hughes said its operations in Tunisia and Egypt have
resumed after civil unrest in the two countries, but all
customer activity has ceased in Libya, where an uprising has
been met with violence. [ID:nLDE72200E]

“Other countries in the area have also experienced civil
unrest which has, to date, not disrupted our operations,” the
Houston-based company said in a statement on Thursday.

North Africa and Egypt generated 3 percent of company
revenue last year. Smaller rival Weatherford International Ltd(WFT.N: Quote, Profile, Research) had said two days earlier that Libya, Tunisia, Egypt,
Yemen and Bahrain made up 3 percent of its revenue.

Sector leader Schlumberger Ltd (SLB.N: Quote, Profile, Research) told investors last
week that it had also shut down its Libyan operations, which
accounted for 1 percent of its revenue. [ID:nN22301566]

As for North America, Baker Hughes said colder-than-normal
weather had delayed clients’ plans for January and February,
and the work might not be completed in March.

The company predicted the combined impact of the “unplanned
events” would knock 4 to 7 cents off first-quarter net income
per share. Analysts had been targeting first-quarter earnings
of 82 cents per share, according to Thomson Reuters I/B/E/S.

Baker Hughes shares dipped briefly before recovering,
helped by an improvement in crude oil prices (CLc1: Quote, Profile, Research), and the
stock was 0.8 percent higher at $69.39 in afternoon trading on
the New York Stock Exchange.

Baker Hughes is hosting a meeting with analysts next
Wednesday and Thursday in Houston.
(Reporting by Braden Reddall, editing by Dave Zimmerman and
Gerald E. McCormick)