KBR posts losses
By Sarah Ann McCay20 June 2014
US-based construction and engineering company KBR has announced losses of US$ 43 million for the first quarter of 2014, compared to a net income of US$ 88 million in the first quarter of 2013.
Consolidated revenue in the first quarter of 2014 was US$ 1.6 billion down from US$ 1.8 billion in the first quarter of 2013. Gross profit in the first quarter of 2014 was US$ 39 million, a drop from US$ 156 million in the prior year quarter.
The firm’s Infrastructure, Government and Power (IGP) sector reported revenue of US$ 337 million for the first quarter of 2014, a decline of US$ 62 million on the year previous. Gross profit was a loss of US$ 20 million, down US$ 39 million on 2013 figures.
According to KBR, the decline in IGP was driven by lower volumes in the North American government and logistics business and the infrastructure and minerals markets, in addition to lower margins on several projects.
“Overall results were disappointing and were negatively impacted by losses stemming from our service segment’s pipe fabrication and module assembly facility in Canada and on two US construction projects, as well as underperformance in our IGP business,” said Stuart Bradie, president and chief executive officer of KBR.
“The company will undergo an in-depth strategic review of its businesses and how we can best address the markets we serve. Once completed, we will provide an update to the market and expect to resume our previous practice of providing earnings guidance. Looking forward, the company’s market position remains strong with a good pipeline of early stage front end engineering design and engineering procurement and construction opportunities throughout the world.”