* CEO says LOGCAP revenue holding up better than expected
* Acquisitions to contribute 17 cents/shr to 2011 EPS
* KBR shares up 1.5 pct
SAN FRANCISCO, Jan 13 KBR Inc (KBR.N) expects
to generate less than a fifth of its 2011 revenue from U.S.
military logistics, though the engineering company said that
will be more than it had previously anticipated.
KBR said on Thursday it expects between $1.6 billion and
$1.8 billion of revenue from U.S. defense-related work under
the Logistics Civil Augmentation Program this year, implying a
roughly similiar decline to what the company had expected for
LOGCAP in 2010.
After booking $4.84 billion in revenue from Middle East
operations for the U.S. government in 2009, KBR had forecast a
40 percent decline in U.S. military logistics revenue in 2010
as troops were pulled out of Iraq.
While KBR has focused more on engineering projects for the
energy and mining industries to offset the lost military work,
Chief Executive Bill Utt said on a conference call he was
"surprised" by how LOGCAP revenue was holding up.
Analysts expect KBR to earn a total of $9.9 billion in 2011
revenue, according to the average on Thomson Reuters I/B/E/S.
Late on Wednesday, KBR raised expectations for 2011 profits
by issuing guidance of $2.05 to $2.30 per share, versus the
$2.04 targeted by analysts. [ID:nN12230890]
Utt said the $280 million acquisition of Chicago-based
Roberts & Schaefer, a bulk material handling and processing
specialist in mining, power and refining, would contribute 11
cents a share to 2011 earnings. The minority interest buyout of
UK subsidiary MWKL would add another 6 cents per share.
But the Houston-based company's outlook for engineering and
construction work generally had also improved.
"We are optimistic that we'll see a much better award base
in 2011 compared to 2010, so the general sentiment that you
have picked up from others in the space, we're similarly
sharing that at a high level," Utt said on the call.
Shares of KBR, which competes with Fluor Corp (FLR.N) among
others, were up 1.5 percent at $30.86 in morning trading.
(Reporting by Braden Reddall, editing by Dave Zimmerman)