10:00PM New York – BJ Services revenue in the fiscal second quarter rose 8% and earnings declined 33% from a year ago on pricing pressures.

BJ Services Company a provider of pressure pumping and oilfield services for the petroleum industry today reported revenue in the second quarter of $1.28 billion, slightly below the $1.285 billion reported in the previous quarter and increased 8% compared with $1.18 billion at the end of March quarter in 2007.

For the fiscal 2008 second quarter net income was $127.3 million or $0.43 per diluted share, a 26% declined from the $0.58 per diluted share reported in the prior quarter and a 33% lower compared with the $0.64 per diluted share reported in the fiscal second quarter 2007.

Operating income for the quarter was $186.5 million, a 26% lower compared with $252.6 million for the prior quarter and a 36% declined compared with $290.2 million reported in the same quarter fiscal 2007.

During the quarter debt declined $8.4 million from $615.9 million and during the quarter cash and cash equivalents lower $10 million from $43.6 million for the same quarter last year.

Chairman and CEO Bill Stewart said, ""During the quarter, the Company experienced significant pricing pressure in North America. Most of the price loss occurred in January as we completed a number of pricing agreements with our customers.”

U.S./Mexico pressure pumping services second quarter 2008 revenue of $643.0 million was 3% lower on the December 2007 quarter with average active drilling rigs decreasing 1% for the same period.

Canada pressure pumping services second quarter 2008 revenue was $138.8 million surged 14% sequentially and year over year.

International pressure pumping services second quarter revenue increased 1% sequentially to $292.1 million with average active drilling rig levels increasing 3%.

Latin America operations led the segment''s increase in revenue. All major markets within the region had revenue growth with the highest increase in Brazil. In the Middle East, increased revenue resulted from the addition of two stimulation vessels into the India market during the later part of fiscal 2007.

Operating income margins for international pressure pumping were 12% in the second quarter of fiscal 2008, consistent with the previous quarter and last year''s March quarter.

Oilfield services group second quarter 2008 revenue of $209.2 million decreased 2% sequentially and increased 16% from a year ago.

BJ Services Company expect its third fiscal quarter, drilling activity in the U.S. to be up modestly compared to the second fiscal quarter. Pricing is expected to continue to be under pressure; however, the company is forecasting the rate of price declines experienced in previous quarters to moderate in the third fiscal quarter.

In the international pressure pumping segment, BJ expects modest revenue improvement with slightly improved margins in the third fiscal quarter.

The company projected diluted earnings for the third fiscal quarter to be in the range of $0.39 to $0.43 per share.

BJ Services Company (BJS: chart) shares plunged $4.82 or 15% to $27.98.