STOCKHOLM/MADRID Troubled Scandinavian airline SAS said on Thursday it had signed a preliminary deal to sell a majority stake in its loss-making Spanair unit to a Spanish investor group, the latest step in a multi-pronged turnaround effort.
HOUSTON KBR Inc (KBR.N), the former engineering and construction arm of Halliburton Co (HAL.N), said on Friday its second-quarter profit fell, hit by one-time charges and weaker income in its business that serves the offshore oil and gas sector.
Profit in the quarter was $48 million, or 28 cents per share, compared with $140 million or 83 cents per share a year ago, when results benefited from a one-time gain.
In the 2008 second quarter, the company recorded a charge of about $40 million, or 15 cents per share, related to a jury award. The company also had a charge of $24 million, or 9 cents cents per share, related to the settlement on a liquefied natural gas project.
Income from continuing operations was 28 cents a share, compared with 30 cents a share a year earlier.
Consolidated revenue in the second quarter of 2008 was $2.7 billion, up 23.5 percent from a year ago.
Total backlog, or unfilled orders, from continuing operations fell 6 percent to $12.6 billion from the prior quarter.
"We view today's results as a mixed bag," Simmons & Co International told clients in a note. "On one hand, operational results look encouraging, yet on the other hand, backlog fell quarter on quarter."
In KBR's government and infrastructure unit, income was $63 million in the second quarter of 2008 compared to $58 million in the second quarter of 2007. KBR is the U.S. Pentagon's largest private contractor in Iraq.
Income at KBR's upstream business unit -- where it provides services to energy companies like engineering offshore production facilities -- was $39 million in the second quarter of 2008, down 17 percent from a year earlier.
Shares of KBR fell 1.7 percent, or 47 cents, at $28.03 in late morning trading on the New York Stock Exchange.
(Reporting by Anna Driver in Houston; Editing by Derek Caney)
Pentair, Ingersoll warn conditions worsening
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Embraer sees credit crunch hitting 2009 jet orders
SAO PAULO Brazil's Embraer , the world's third largest commercial jet maker, expects aircraft orders to decline in 2009 as credit dries up because of the global financial crisis, Chief Executive Frederico Curado said on Thursday.