KBR Q3 Net Income Climbs (USA)

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.”

[mappress]

LNG World News Staff, October 25, 2012