Baker Hughes Incorporated announced that net income for the second quarter 2008 was $379.3m or $1.23 per diluted share compared to $349.6 million or $1.09 per diluted share for the second quarter 2007 and $395.0 million or $1.27 per diluted share for the first quarter 2008. Net income for the second quarter of 2008 includes a net charge of $62.0 million ($40.3 million after-tax or $0.13 per diluted share), relating to the settlement of litigation with ReedHycalog announced May 22, 2008. Net income for the first quarter 2008 includes a gain of $28.2 million ($18.4 million after-tax or $0.06 per diluted share) from the sale of the Completion and Production segment's Surface Safety Systems ("SSS") product line.
Revenue for the second quarter 2008 was $2,997.5 million, up 18% compared to $2,537.5 million for the second quarter 2007 and up 12% compared to $2,670.4 million for the first quarter 2008. revenue for the second quarter 2008 was up 20% compared to the second quarter 2007 and up 9% compared to the first quarter 2008. Outside of , revenue for the second quarter 2008 was up 17% compared to the second quarter 2007 and up 15% compared to the first quarter 2008.
During the second quarter of 2008, debt increased $74.8 million to $1,621.2 million, and cash and short-term investments increased $41.3 million to $1,071.7 million compared to the first quarter of 2008. In the second quarter 2008, the company's capital expenditures were $312.4 million, depreciation and amortization expense was $155.7 million and dividend payments were $39.9 million.
During the second quarter of 2008, the company repurchased 51,000 shares of common stock at an average price of $87.08 per share for a total of $4.4 million. At the end of the second quarter of 2008, the company had authorization remaining to repurchase approximately $251.7 million in common stock.