Engineering, construction and services company KBR, Inc. (KBR: Quote) Wednesday, reported a rise in the fourth-quarter profit, helped by a 42% rise in revenue and positive contribution from LNG project change order.
KBR's net income for the quarter increased to $88 million or $0.54 per share from $71 million or $0.42 per share in the comparable period. Income from continuing operations rose to $88 million or $0.54 per share, from last year's $48 million or $0.28 per share.
On average, thirteen analysts' polled by Thomson Reuters estimated earnings of $0.40 per share for the quarter. Analysts' estimate typically excludes special items.
KBR, the split off company from Halliburton Co. (HAL) last year, reported a quarterly consolidated operating income of $153 million, up from $82 million reported in the year ago quarter. The income includes positive contribution of $24 million change order related to an earlier charge on an LNG project, partially offset by a $20 million charge related to the unfavorable final judgments from the Department of Justice and SEC Foreign Corrupt Practices Act investigations.
Among competitors, Irving, Texas-based group Fluor Corp. (FLR) is slated to release fourth-quarter results today after market close. Analysts expect Fluor to earn $0.92 per share for the quarter, on revenues of $5.81 billion.
KBR's total revenue for the fourth-quarter increased 42% to $3.4 billion from $2.4 billion, above Street estimates of $2.96 billion.
Segment-wise, the company reported higher government and infrastructure revenues of $1.8 billion from $1.6 billion last year, while Upstream revenues were $0.8 billion, up from $0.6 billion last year. Services business unit revenues surged to $0.6 billion from $0.1 billion, while downstream unit revenues rose to $0.15 billion from $0.09 billion a year ago.
KBR's technology division revenues increased to $23 million from $18 million in the prior year quarter.
For the third quarter, KBR reported a net income of $85 million or $0.51 per share, up from $63 million, or $0.37 per share reported a year ago. Revenues for the third quarter improved 39% to $3.0 billion from $2.2 billion in the previous year third-quarter.
For the full-year 2008, net income was $319 million or $1.91 per share, higher than last year's $302 million or $1.79 per share. Total revenue increased 32% to $11.6 billion from $8.7 billion a year ago.
Wall Street had estimated earnings of $1.71 per share on revenues of $11.14 billion for the year.
Chairman and CEO Bill Utt, said, "KBR remains optimistic about the attractive opportunities that lie ahead to build and grow on the achievements of 2008."
Currently, the stock is down $0.35, trading at $13.12 on the New York Stock Exchange.
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by RTT Staff Writer
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