The first quarter of 2012 saw 2 significant points of inflection in KBR's revenue backlog. First, Q1 was the first increase in KBR's revenue backlog since the fourth quarter of 2009. Second, this was KBR's first increase in revenue backlog to be worked off over the next 12 months since last year's first quarter. And we ended the quarter with a strong balance sheet with $837 million in cash and equivalents.As you've noted from our press release, our Minerals business unit took first quarter charges that were primarily the result of further increases in cost estimates on one of the legacy Roberts & Schaefer projects. While we're clearly disappointed with the additional charges, we did enter performance testing for this project in Q1, and are therefore confident we have put this particular issue behind us. With respect to the other 2 minerals projects we discussed on the fourth quarter call, they are largely progressing as expected with no additional charges that were taken on either project in the first quarter. One of these projects is to be completed during the third quarter. We continue to believe we have strong risk management processes in place for this business and as a result, the ongoing and future projects will continue to receive the double regard in discipline necessary to drive strong operating performance.
KBR's CEO Discusses Q1 2012 Results - Earnings Call Transcript
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.