KBR Profit Falls Sharply on Charges

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By THE ASSOCIATED PRESS
Published: August 1, 2008

HOUSTON (AP) -- Engineering and construction services provider KBR says its second-quarter profit fell sharply from a year-ago period boosted by asset sale gains, and also says results were hurt by hefty project charges and a jury award on a 2003 subcontract.

The Houston-based company, which split off from Halliburton in 2007, says net income for the quarter ended June 30 slipped to $48 million, or 28 cents per share, from year-ago profit of $140 million, or 83 cents per share. The 2007 period included $90 million worth of earnings related to its former stake in Devonport Management, and the latest period includes 18 cents per share worth of charges.

Revenue grew 24 percent to $2.66 billion from $2.15 billion in the second quarter of 2007.

Analysts surveyed by Thomson Financial expected profit of 36 cents per share on revenue of $2.32 billion.