Dick Cheney firm £328m in the red

HALLIBURTON, the oilfield services company formerly run by US Vice President Dick Cheney, has reported a second-quarter loss of nearly $500m (£328m).

The company, however, did not comment on an investigation by the Securities and Exchange Commission into its accounting on construction projects during Cheney's reign from 1995 to 2000.

Halliburton is being sued by an activist group that alleges it overstated revenue by as much as $445m on three years. The White House and Cheney deny there were any irregularities.

Analysts had expected the huge loss because Halliburton had warned it would include asbestos liability in its accounts. The results included a one-off charge of $391m to cover future asbestos claims related to its construction business. The Dallas-based firm swung to a loss of $498m, or $1.15 a share. from a profit of $382m or 89 cents a share a year earlier.

The shares have sunk from a 52-week-high of $36.79 to $9.10 on Tuesday, partly because of the accounting probe but also because of analysts' concerns over the asbestos liability, which until today had not been quantified. Xerox, whose accounting practices are also under scrutiny, was also due to report quarterly earnings today.