(RTTNews) -  Monday, Michael Baker Corp. (BKR: News ), a provider of architecture, engineering and construction services, reported a decline in profit for the third quarter due to a drop in revenue. However, income from continuing operations for the third quarter slightly increased due to a rise in equity income from the company's unconsolidated joint venture operating in Iraq.

Net income attributable to Michael Baker declined to $7.27 million or $0.81 per share from $11.79 million or $1.33 per share in the comparable period year-ago.

Income from continuing operations increased to $6.96 million from $6.90 million a year-ago. Earnings per share from continuing operations remained flat at $0.78.

On average, five analysts polled by Thomson Reuters estimated earnings of $0.87 per share. Analysts' estimates typically exclude special items.

According to the company, the higher income from continuing operations, on lower revenue, is attributable primarily to an increase in equity income from the company's unconsolidated joint venture operating in Iraq.

Revenues for the quarter decreased to $110.15 million from $119.15 million a year-ago. Two Wall Street analysts estimated a revenues of $165.70 million.
Baker said that the decrease in revenue for the current period relates to a net decline of $7.3 million in work performed for the Federal Emergency Management Agency or FEMA and a decrease of $0.9 million in work directly performed by Baker as a subcontractor to the unconsolidated joint venture operating in Iraq.

President and Chief Executive Officer Bradley Mallory said, "Our core Engineering business has been solidly profitable, and we expect continued growth in profitability going forward, despite the slight flattening of revenues resulting from the changing nature of our work for FEMA."

According to the company, the total backlog for continuing operations at September 30 was $1.43 billion, compared to $984 million at December 31. Of these totals, $438 million and $450 million are considered funded backlog. Included in funded backlog at September 30 was $47 million related to the Company's FEMA Map Modernization contract, compared to $68 million at December 31.

For the nine-month period, net income attributable to Michael Baker declined to $22.16 million or $2.48 per share from $26.16 million or $2.94 per share in the prior year period. Year-to-date income from continuing operations declined to $18.68 million or $2.10 per share from $20.61 million or $2.32 per share in the year-ago period. Year-to-date revenues declined to $338.56 million from $341.31 million year-ago.

BKR closed Monday's last trade on AMEX at $36.93, up $1.03 or 2.87%.

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by RTT Staff Writer

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