(Source: Associated Press/AP Online)
HOUSTON - Engineering and construction company KBR Inc. said Thursday its third-quarter profit fell 14 percent as revenue declined in its biggest business, government and infrastructure, and in its military work in Iraq as the U.S. has fewer projects there.
Net income of $73 million, or 45 cents per share, was down from $85 million, or 51 cents per share, in the same quarter last year. Analysts surveyed by Thomson Reuters expected earnings of 41 cents per share.
Revenue for the quarter ended Sept. 30 was $2.84 billion, down 6 percent from $3.02 billion in the same three months of 2008.
Analysts expected revenue of $2.92 billion.
Revenue at KBR's government and infrastructure business fell 28 percent to $1.38 billion from $1.76 billion.
Bill Utt, chairman, president and CEO, said revenue for the Army's Logistics Civil Augmentation Program, or Logcap, was down 15 percent in the quarter, "consistent with reduced activity levels in Iraq."
On Monday, Stifel, Nicolaus downgraded KBR to "Hold" from "Buy" on an assessment that profit could decline significantly this year as the U.S. military becomes less active in Iraq.
Backlog at the end of September was $13.5 billion, up 9 percent from the second quarter with "no material project cancellations" during the quarter, KBR said.
Shares of KBR slipped 8 cents to $21.13 in morning trading.
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