) dipped 7.3% since the company declared its second-quarter 2014
results on Jul 31. In contrast to the Zacks Consensus Estimate of
earnings of 26 cents, KBR reported a loss of 6 cents per share in
the quarter. In the prior-year quarter, the company had reported
earnings of 61 cents per share.
Kbr, Inc - Earnings Surprise | FindTheBest
Revenues dipped 14.9% year over year to $1,659 million, lagging
the Zacks Consensus Estimate of $1,682 million. Gross profit stood
at $28 million plunging from $140 million in the year-ago
The results were impacted by the continued disappointing
performance of KBR's pipe fabrication and module assembly business
based in Canada.
segment's revenues plummeted 39.0% year over year to $362 million.
The decline in revenues was primarily owing to continued low
volumes in a Nigeria based gas-to-liquid (GTL) project coupled with
a liquefied natural gas (LNG) project based in Algeria.
Revenues in the
segment increased 54.9% year over year to $533 million. The
revenues growth came on the back of developments in the
engineering, procurement and construction (EPC) activities in
ammonia, urea and ethylene projects in key regions like North
Infrastructure, Government and Power
(IGP) segment revenues declined 16.0% year over year to $315
million. The business was impacted by the reduced activity in the
U.S. Government projects, especially in LogCAP IV, the LogCAP III
and the Restore Iraqi Oil (RIO) contracts.
segment reported a revenue decline of 29.2% year over year to $439
million. The decrease in revenues was primarily because of the
losses incurred in Canada-based pipe fabrication and module
Other Financial Details
KBR ended the quarter with cash and cash equivalents of $969
million and shareholders' equity of $2,339 million.
Operating cash flow in the six month period (ended Jun 30) was
$20 million, a significant improvement from the prior-year period's
figure of negative $97 million. The company's operating cash flow
for the quarter came in at $37 million.
In the quarter, the company repurchased shares worth $40 million
and has made dividends payouts worth $12 million. So far in the
year, KBR has repurchased 3.5 million shares for about $96 million
and paid $24 million for dividends.
KBR currently carries a Zacks Rank #4 (Sell). Some better-ranked
stocks worth considering include The Andersons, Inc. (
), Ashland Inc. (
) and North American Palladium Ltd. (
), each carrying a Zacks Rank #2 (Buy).
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