By Tess Stynes
KBR Inc. said the Armed Services Board of Contract Appeals
affirmed the government contractor's use of private security
contractors during combat operations in Iraq, clearing the way for
KBR to recover $45 million for services rendered in 2003 to
2007.
The company--which performs engineering, construction and
defense--said the decision also affirms the appropriateness of an
added $10 million previously paid to KBR.
The payment isn't expected to have a material impact on KBR's
2014 earnings.
The former Halliburton Co. unit has been one of the key U.S.
government contractors in Iraq following the 2003 invasion,
providing logistical support for American forces, among other
tasks. The company has suffered declining revenue as the U.S.,
having withdrawn from Iraq and scaled back its presence in
Afghanistan, continues to reduce military spending.
Last week KBR said it would review its business strategy as the
company continued its run of declining quarterly revenue, now at 19
straight periods.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires