Boston, MA 06/20/2014 (wallstreetpr) – Global engineering, construction and services company, KBR, Inc. (NYSE:KBR) disclosed that it would under a strategic review of its complete businesses to determine how its resources can be used best in the markets it serve. The company suffered a loss in the first quarter, whereas the Street analysts’ were expecting profit.
Strategic Review
KBR, Inc. (NYSE:KBR)’s disclosure that it will go for a complete strategic review of its businesses indicates the kind of disappointment it had suffered due to the poor numbers in the first quarter. KBR refrained from giving guidance either for the second quarter or for the full year.
It indicated that it would be in a position to provide an outlook after it completes the strategic review of its business. The company, however, said that the market position continues to be strong with a good pipeline of front end engineering design and procurement, besides construction opportunities around the globe.
1Q Results
The company incurred a loss of $43 million or a loss of 29 cents a share in the first quarter versus net income of $88 million or 59 cents a share in the year-ago quarter. On average, Wall Street analysts expected the company to report earnings of 38 cents a share for the same period.
Consolidated revenue dipped to $1.6 billion from $1.9 billion in the previous year quarter. It is lower than the Street analysts’ predictions of $1.63 billion revenue.
While revenue from Gas Monetization slipped to $400 million from $595 million, revenue from Hydrocarbons increased to $452 million from $342 million in the year earlier quarter. The company’s infrastructure, government and power revenue also fell to $337 million from $399 million. Its revenue from services too skid to $433 million from $478 million in the year-ago quarter.
Management Speaks
KBR, Inc. (NYSE:KBR) president and CEO Stuart Bradie expressed disappointment over the quarterly results that were unfavorably affected by losses from its service division’s pipe fabrication and assembling of module facility in Canada besides two construction projects in the U.S. and poor performance of its IGP unit.
