KBR Inc. said that the company now expects fiscal year 2012 earnings per diluted share between $1.95 to $2.10 excluding the third quarter 2012 goodwill impairment charge.
This is below the company’s previously communicated guidance range of between $2.60 and $2.80 excluding the third quarter 2012 goodwill impairment charge. The company indicated the reduction in the guidance range for 2012 is the result of significant project charges the company expects to take in the company’s Minerals and U.S. Construction businesses, both in the fourth quarter of 2012 as well as higher than expected labor cost absorption expenses.
Also, KBR expects fiscal year 2013 earnings per diluted share between $2.45 to $2.90, which includes the following:
“We are clearly disappointed with our outlook for the 2012 fourth quarter and have taken steps to resolve the issues giving rise to these charges,” said Bill Utt, Chairman, President and Chief Executive Officer. “As we look forward to 2013, as a result of the delays in late 2012 awards, we expect the first half of 2013 to be in the range of $0.90 to $1.10 with the second half progressively stronger as existing projects continue to ramp-up, other projects close out and new awards pick-up during the first half of 2013. Overall, the guidance does not include any material 2013 earnings contributions from major new Hydrocarbons awards.”
[mappress] LNG World News Staff, January 11, 2013