As we think about our updated 2012 earnings guidance, there a number of puts and takes. We presently expect our businesses in Canada and the Middle East to do better than we originally expected, while other businesses, such as North American Government and Minerals, will likely come in lighter than expected. In our Hydrocarbons businesses, we expect 2012 to be better than expected. The improved execution across our portfolio of projects has largely offset the expected earnings contributions from those large projects that have slipped to the right since the beginning of the year. Taking all this into account and coupled with the fact that the balance of 2012 largely sits in front of us today, we have updated our guidance to $2.60 to $2.80 per share.There are a number of areas of strength in the quarter. Revenue was up 2% and job income was up 4% year-over-year excluding LogCAP, reflecting the continued underlying growth of our businesses and general strength in execution. Consolidated margins also continued to expand. Job income margins and business group margins were both improved, with particular strength in Gas Monetization, where we're delivering strong execution on our projects that I previously discussed. Our Oil and Gas business also had exceptional job income performance in the quarter, where we delivered higher work volumes on a number of projects and also recorded approximately $8 million in license fees for several semi-submersible hulls that were booked in the quarter.
KBR Management Discusses Q2 2012 Results - Earnings Call Transcript
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