KBR third-quarter revenue drops 9 pct, misses forecasts

Reuters

Oct 24 (Reuters) - Engineering company KBR Inc onThursday reported lower quarterly revenue and profit that missedforecasts due partly to a tax settlement, and said it expectedfull-year earnings at the low end of its own expectations.

This month, KBR had announced an unfavorable ruling in a taxdispute with its former parent, Halliburton Co, whichreduced third-quarter earnings by $38 million, or 26 cents pershare.

Chief Executive Bill Utt said several other non-operationaltax items and delays to project close-outs also affected itsearnings in the quarter, while operating income was up 35percent from the previous quarter.

Its backlog of projects increased to $14.2 billion at theend of September from $13.8 billion three months earlier.

"We continue to see a strong opportunity set of majorprojects across all of our businesses," Utt said in a statement."However, we expect the near term competitive environment fornew awards to continue."

Third-quarter profit was $24 million, or 16 cents per share,compared with a loss of $81 million, or 55 cents per share. Theprevious year's loss was caused by a writedown on a 2010acquisition. Revenue fell 9 percent to $1.81 billion.

Analysts had been looking for earnings of 70 cents per shareon revenue of $2 billion, according to Thomson Reuters I/B/E/S.

Houston-based KBR said it now expected 2013 earnings to beat the low end of its predicted range of $2.55 to $2.90 pershare, whereas analysts had been targeting $2.67 on average.

Rates

View Comments (0)