By Chelsey Dulaney
KBR Inc.'s loss widened in its fourth quarter as the company
booked heavy charges to restructure its business and posted
softer-than-expected revenue.
For 2015, which KBR termed a "transition year," the company
forecast adjusted per-share earnings of $1.07 to $1.22, in-line
with analysts expectations for $1.16 a share, according to Thomson
Reuters.
In December, KBR announced plans to restructure its operations
and shed or exit some noncore segments following a strategic review
aimed at reducing operating costs, though it has said it plans to
continue with its overseas troop-support business.
The former Halliburton Co. unit had been one of the key U.S.
government contractors in Iraq following the 2003 invasion,
providing logistical support for American forces, among other
tasks. KBR has suffered declining revenue as defense budgets in the
U.S., which had withdrawn from Iraq and scaled back its presence in
Afghanistan, have been tight.
KBR said the restructuring will focus the company on its
hydrocarbons and international government-services businesses and
is expected to lower costs by at least $200 million a year by
2016.
KBR initially projected that the moves could result in up to $1
billion in charges, but the company booked $1.16 billion in charges
in the fourth quarter on higher impairment charges and tax reserves
than initially expected.
Overall, for the quarter ended in December, KBR reported a loss
of $1.24 billion, or $8.57 a share, compared with a loss of $56
million, or 38 cents a share, a year earlier. Revenue fell 15.7% to
$1.42 billion.
Analysts polled by Thomson Reuters expected per-share profit of
21 cents and revenue of $1.63 billion.
Technology and consulting revenue fell to $68 million from $94
million a year earlier.
Engineering and construction revenue fell 6.1% to $1.04 billion,
while government services revenue fell to $111 million from $237
million a year earlier.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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