This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

KBR Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: KBR

Now I'll turn the call over to Bill. Bill?

William P. Utt

Thanks, Zac, and good morning, everyone. During today's call, I'd like to cover a few key areas. First, I'll walk through a few key takeaways relative to our second quarter performance and make some brief comments on our updated 2012 earnings guidance. Second, I'll provide an update on several of our key prospects. And third, I'll highlight the dynamics we're seeing in our markets.

For the second quarter, KBR delivered $0.70 per fully diluted share. Our performance was better than we had initially expected for Q2 but still generally consistent with our overall expectations for the full year 2012. We initially expected that second quarter earnings before taxes would be a bit better than the first quarter. Our actual results were a fair amount better than those expectations for a number of reasons, a few of which I'll touch on here.

First, as we noted in our Q2 earnings release issued last night, we've seen stronger execution during the quarter on several projects in construction or commissioning, which has allowed us to reduce our forecast cost estimates to complete these projects. Additionally, as we close out these projects, we have to be able to resolve several outstanding issues on these projects, which may present further opportunities for KBR. Second, we've made good progress and have seen scope growth on our other projects beyond our initial expectations as well as realized achievements on several projects we had expected to recognize later in 2012. These projects are progressing well and KBR's execution has been consistently strong. Third, we've maintained our focus on disciplined cost controls across KBR and recognized notable benefit versus forecast in the quarter. In conjunction with this, we've lowered our guidance on corporate G&A to approximately $230 million from our previous guidance of between $240 million and $250 million.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,340.97 -75.88 -0.44%
S&P 500 2,013.34 -7.91 -0.39%
NASDAQ 4,678.4870 -4.92 -0.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs