HOUSTON (Reuters) - 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