KBR third-quarter revenue drops 9 percent, misses forecasts
(Reuters) - Engineering company KBR Inc (KBR.N) on Thursday reported lower quarterly revenue and profit that missed forecasts due partly to a tax settlement, and said it expected full-year earnings at the low end of its own expectations.
This month, KBR had announced an unfavorable ruling in a tax dispute with its former parent, Halliburton Co (HAL.N), which reduced third-quarter earnings by $38 million, or 26 cents per share.
Chief Executive Bill Utt said several other non-operational tax items and delays to project close-outs also affected its earnings in the quarter, while operating income was up 35 percent from the previous quarter.
Its backlog of projects increased to $14.2 billion at the end of September from $13.8 billion three months earlier.
"We continue to see a strong opportunity set of major projects across all of our businesses," Utt said in a statement. "However, we expect the near term competitive environment for new 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. The previous year's loss was caused by a writedown on a 2010 acquisition. Revenue fell 9 percent to $1.81 billion.
Analysts had been looking for earnings of 70 cents per share on revenue of $2 billion, according to Thomson Reuters I/B/E/S.
Houston-based KBR said it now expected 2013 earnings to be at the low end of its predicted range of $2.55 to $2.90 per share, whereas analysts had been targeting $2.67 on average.