KBR Announces Strong Second Quarter 2015 Earnings
Net income attributable to KBR was $62 million or $0.43 per diluted share ($0.46 per diluted share excluding $5 million in pre-tax U.S. Government legacy legal fees), in the second quarter of 2015 compared to a net loss of $8 million or a loss of $0.06 per diluted share, in the second quarter of 2014. Consolidated revenue in the second quarter of 2015 was $1.4 billion compared to $1.7 billion in the second quarter of 2014.
“Our second quarter consolidated results reflect continued momentum towards achieving the strategic objectives we previously outlined. During the quarter we delivered improved operational and financial performance and continued progress towards our cost reduction targets. KBR’s transformation continues and we are on track to achieve the 2016 targets for segment profit margin percentages and a $200 million annual cost reduction,” said Stuart Bradie, President and Chief Executive Officer of KBR, Inc. “To-date the company has identified and actioned more than $125 million of the $200 million savings target with the identified savings being realized throughout 2015 and 2016. Also during the quarter, we concluded the sale of our Building Group subsidiary and announced the formation of strategic partnerships to accelerate growth and earnings in our Industrial Services and pipe fabrication businesses,” Bradie said.
Bradie continued, “Low oil prices continue to impact client capital expenditures, however, KBR’s technology and project delivery capability for natural gas derivative products and associated downstream facilities positions us well for this market. Even with these challenging markets, we had a good bookings quarter led by our joint venture with Kvaerner which was awarded a major contract for topsides for stage one of a multi-staged development of the Johan Sverdrup oil and gas field. Our consolidated backlog from our ongoing businesses remained relatively unchanged from Q1. Additionally, we remain in sole source negotiations for two major U.K. Ministry of Defence contracts and we continue to make good progress in successfully settling a number of legacy, U.S Government contract disputes. Finally, our strong balance sheet provides flexibility for us to move quickly as our markets continue to evolve.”
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