UPDATE 1-KBR raises 2011 profit outlook after 2nd qtr

Wed Jul 27, 2011 4:44pm EDT

* Q2 EPS 65 cents vs 66 cents a year before

* Revenue down 8 pct at $2.46 bln, above Wall St number

* Raises 2011 EPS guidance to $2.60-$2.85 from $2.05-$2.30

* Shares rise 1.3 pct in after-hours trading

SAN FRANCISCO, July 27 (Reuters) - KBR Inc (KBR.N), the second-largest publicly traded U.S. engineering company by market value, raised its full-year profit outlook after reporting better-than-expected quarterly results on Wednesday.

KBR's second-quarter net income was $100 million, or 65 cents per share, compared with $106 million, or 66 cents per share, a year before. Revenue fell 8 percent to $2.46 billion.

Analysts had expected a profit of 53 cents per share on revenue of $2.4 billion, according to Thomson Reuters I/B/E/S.

KBR also raised its 2011 guidance by about 25 percent based on its "stronger operating performance, lower effective tax rate, and control of general and administrative expense," Chief Executive Bill Utt said in a statement.

The Houston-based company now expects earnings per share of $2.60 to $2.85 for the full year, up from a previous range of $2.05 to $2.30.

KBR shares were up 1.3 percent in after-hours trading at $36.84 from their $36.37 close in regular trading. (Reporting by Braden Reddall; Editing by Tim Dobbyn)