KBR announced that its third quarter 2012 net income was $97 million on an adjusted, non-GAAP basis, compared to net income attributable to KBR of $93 million on an adjusted, non-GAAP basis in the third quarter of 2011.
On a GAAP basis, third quarter 2012 net loss attributable to KBR of $81 million includes a non-cash goodwill impairment charge of $178 million, related to a market assessment of the Minerals Business Unit. Third quarter 2011 net income attributable to KBR of $185 million includes discrete tax benefits of $92 million related to an arbitration award in favor of Barracuda & Caratinga Leasing Company B.V. as well as a deferred tax liability release for KBR’s share of an Australian rail investment.
Consolidated revenue in the third quarter 2012 was $2.0 billion compared to $2.4 billion in the third quarter of 2011. Operating loss in the third quarter 2012 was $11 million compared to operating income of $138 million in the prior year third quarter.
“ The emergence of North American shale gas resources is a net positive development for KBR; however, over the past several quarters we have witnessed a severe reduction in solid fuel materials handling prospects in North America that has triggered KBR writing down goodwill from our 2010 acquisition of Roberts & Schaefer. If we look beyond the goodwill impairment, and despite some headwinds at our U.S. Construction Business Unit and a legacy Roberts & Schaefer project, I am extremely pleased with KBR’s continued strong financial and operating performance this quarter ,” said Bill Utt, Chairman, President, and Chief Executive Officer of KBR . “ We continue to see significant new project opportunities across all of our Business Units and remain confident in KBR’s ability to continue to execute our projects successfully going forward .”
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LNG World News Staff, October 25, 2012