Team Infidel
Forum Spin Doctor
Arizona Republic (Phoenix)
May 5, 2007
Ex-Halliburton unit posts 7.7% earnings hike
By Associated Press
HOUSTON - KBR Inc., the former Halliburton Co. subsidiary, said Friday that its net income rose 7.7 percent in the first quarter, lifted in part by business in Iraq.
The military contractor and engineering/construction outfit, which split from Halliburton last month, said earnings for the January-March period were $28 million, or 17 cents a share, up from $26 million, or 19 cents a share, a year ago.
The two companies have been magnets for criticism because of KBR's more than $19 billion in Pentagon contracts to be the sole provider of food and shelter services to the military in Iraq and Afghanistan. Democrats in Congress have claimed KBR benefited from ties to Vice President Dick Cheney, who once led Halliburton.
KBR's most recent results included a loss from discontinued operations of $2 million, or 1 cent per share, related to the sale in last year's second quarter of Production Services Group.
Revenue in the first three months of 2007 rose to $2.3 billion from $2.2 billion a year ago.
"With the separation from Halliburton now complete, I look forward to KBR's future with great optimism as KBR is now able to devote its full focus toward delivering the highest quality engineering, construction and services projects to our industrial, governmental and military customers," KBR Chairman and Chief Executive Bill Utt said in a statement.
Halliburton welcomed the separation, too, which allows it to focus on its profitable oilfield services operations and distance itself from KBR's support services in Iraq and elsewhere.
Analysts have said KBR, with its lower profit margins, has been a drag on Halliburton earnings.
In its earnings report, KBR said first-quarter operating income at its government and infrastructure arm rose to $55 million from $52 million a year earlier, due primarily to increased income in Iraq.
Operating income at its energy and chemicals division fell sharply to $13 million from $44 million in the first quarter of 2006. KBR attributed the decline largely to a $20 million charge related to a joint venture in Algeria.
The company also said that while it incurred no charges in the most recent quarter for a joint venture to build a gas-to-liquids project in Escravos, Nigeria, it identified an additional $63 million in projected cost increases. The Nigerian project already has been a drag on earnings in previous quarters because of delays and cost increases.
KBR said all parties involved "continue to have an active and ongoing discussion to find an optimal way to execute the project."
May 5, 2007
Ex-Halliburton unit posts 7.7% earnings hike
By Associated Press
HOUSTON - KBR Inc., the former Halliburton Co. subsidiary, said Friday that its net income rose 7.7 percent in the first quarter, lifted in part by business in Iraq.
The military contractor and engineering/construction outfit, which split from Halliburton last month, said earnings for the January-March period were $28 million, or 17 cents a share, up from $26 million, or 19 cents a share, a year ago.
The two companies have been magnets for criticism because of KBR's more than $19 billion in Pentagon contracts to be the sole provider of food and shelter services to the military in Iraq and Afghanistan. Democrats in Congress have claimed KBR benefited from ties to Vice President Dick Cheney, who once led Halliburton.
KBR's most recent results included a loss from discontinued operations of $2 million, or 1 cent per share, related to the sale in last year's second quarter of Production Services Group.
Revenue in the first three months of 2007 rose to $2.3 billion from $2.2 billion a year ago.
"With the separation from Halliburton now complete, I look forward to KBR's future with great optimism as KBR is now able to devote its full focus toward delivering the highest quality engineering, construction and services projects to our industrial, governmental and military customers," KBR Chairman and Chief Executive Bill Utt said in a statement.
Halliburton welcomed the separation, too, which allows it to focus on its profitable oilfield services operations and distance itself from KBR's support services in Iraq and elsewhere.
Analysts have said KBR, with its lower profit margins, has been a drag on Halliburton earnings.
In its earnings report, KBR said first-quarter operating income at its government and infrastructure arm rose to $55 million from $52 million a year earlier, due primarily to increased income in Iraq.
Operating income at its energy and chemicals division fell sharply to $13 million from $44 million in the first quarter of 2006. KBR attributed the decline largely to a $20 million charge related to a joint venture in Algeria.
The company also said that while it incurred no charges in the most recent quarter for a joint venture to build a gas-to-liquids project in Escravos, Nigeria, it identified an additional $63 million in projected cost increases. The Nigerian project already has been a drag on earnings in previous quarters because of delays and cost increases.
KBR said all parties involved "continue to have an active and ongoing discussion to find an optimal way to execute the project."