UPDATE 2-URS 3rd quarter profit tops views, raises outlook
* Q3 EPS 79 cents vs 67 cents expected by Wall Street
* 2009 EPS guidance raised to $3.32 to $3.42
* Backlog $17.9 bln vs $18.1 bln end Q2
* Shares down about 4 pct after-hours after initial rise
(Adds shares, company comment, background, byline)
SAN FRANCISCO, Nov 12 (Reuters) - Engineering company URS Corp (URS.N) posted a better-than-expected quarterly profit on Thursday and raised its 2009 outlook, while forecasting more growth next year, boosted by U.S. government spending.
Chief Executive Martin Koffel reported strong growth in its federal sector, including work for the U.S. Defense and Energy departments. This, along with stability in its infrastructure business, offset weakness on the power and industrial side.
Third-quarter net profit was $64.8 million, or 79 cents per share, compared with $65.8 million, or 77 cents per share, in the same quarter a year ago. Revenue fell 10 percent to $2.32 billion.
Analysts had expected earnings per share of 67 cents, on revenue of $2.34 billion, according to the averages on Thomson Reuters I/B/E/S.
The company raised 2009 earnings guidance to $3.32 to $3.42 per share, up from $3.20 to $3.35 per share in August and tightened 2009 revenue expectations to $9.4 billion to $9.6 billion, bringing down the range's top end by $200 million.
Analysts anticipate a strong showing for 2009 overall, with an average earnings estimate of $3.34 per share on Thomson Reuters I/B/E/S
Citing further strength in infrastructure and government spending, URS said it expected revenue and earnings growth in 2010, when excluding this year's gain from selling its interest in a German mining and power business. The company would give more guidance along with its fourth-quarter results, it added.
The San Francisco-based company said its backlog of orders fell to $17.9 billion at the end of the third quarter from $18.1 billion three months before.
On Monday, U.S. sector leader Fluor Corp (FLR.N) cut its backlog and forecast weaker earnings this year and next, although McDermott International Inc (MDR.N) posted surprisingly good profits due to offshore oil and gas strength. [ID:nN09278710]
URS was down to $39 after initially rising to $40.80 in after-hours trading. The stock fell 2.7 percent to close $40.49 in regular trading. As of the close of trade on Thursday, the stock is down 1 percent so far in 2009, compared with a 9 percent decline for Fluor. (Reporting by Braden Reddall; editing by Tim Dobbyn and Andre Grenon)
