KBR first-quarter profit up, shares climb

By Anna Driver

HOUSTON (Reuters) - KBR Inc (KBR.N: Quote, Profile, Research), the engineering and construction company, said on Friday its first-quarter net profit more than tripled, helped by an arbitration award, income from energy projects and its work for the U.S. government in Iraq.

Adjusting for items, analysts said KBR earned about 40 cents per share, above the Wall Street consensus estimate of 34 cents per share.

Shares of the company, which split off from parent Halliburton Co (HAL.N: Quote, Profile, Research) last year, shot up 7 percent in morning trading on the New York Stock Exchange.

Research firm Simmons & Co Int'l told its clients in a research note that it was a good quarter for the Houston company, and Tudor Pickering Holt Securities said the results offered investors a "sigh of relief" after a big miss from one of KBR's competitors.

Net profit increased to $98 million, or 58 cents a share, from $28 million, or 17 cents a share, a year ago.

Total revenue soared 24 percent at $2.52 billion.

Consolidated operating income was $154 million in the first quarter of 2008, up sharply from $45 million.

Operating income was lifted by a $51 million gain related to an arbitration award and contributions from various energy projects, including the Scotford Upgrader in Canada, the Yanbu refinery project in Saudi Arabia and the company's work in Iraq.