Aug 6 Engineering company URS Corp
reported earnings that were in line with expectations and a
decline in its backlog of projects, particularly for work with
the U.S. government.
Citing uncertainty over the U.S. federal budget, URS also
reduced the top end of its 2013 earnings guidance range by 25
cents per share, bringing it down to $4.25 to $4.50 per share.
The backlog declined by $1 billion to $11.8 billion at the
end of the second quarter, with more than half the loss coming
out of URS's core Federal business segment, which counts the
U.S. Defense, Homeland Security, State and Treasury departments
URS Chief Executive Martin Koffel, who is due to retire next
June and just brought on Bill Lingard from recent acquisition
Flint Energy Services to be his chief operating officer, said
most delayed federal work would need to be done eventually.
"The precise timing will depend on how the budget debate is
resolved in Washington," Koffel said on a conference call. "In
the meantime, we continue actively to pursue a significant
pipeline of national security opportunities, which have been
less affected by the budget issues."
San Francisco-based URS reported second-quarter net profit
of $67.3 million, or 91 cents per diluted share, compared with
$53.6 million, or 72 cents per share, a year before. Revenue
rose 4 percent to $2.8 billion.
Excluding a 5-cents-per-share charge related to foreign
exchange losses for intercompany loans, URS earned 96 cents per
share, matching the average estimate on Thomson Reuters I/B/E/S.