By Houston Business Journal

If a reduction in activity on one of KBR Inc.â¿¿s golden military contracts hit its second-quarter earnings, it was difficult to tell in the overall picture.

Houston-based KBR (NYSE: KBR) reported net income of $106 million, or 66 cents per share, on revenue of $2.7 billion, for the three months ended June 30, 2010. That compared with net income of $67 million, or 42 cents per share, on revenue of $3.1 billion, for the same quarter in 2009.

The Houston-based engineering, construction and services company expected another quarterly decrease of $468 million in revenue in its infrastructure, government and power business unit again due to lower volume in its LogCAP III, or Logistics Civil Augmentation Program, which provides services to the military in Iraq and Afghanistan.

However, despite the loss in revenue, second quarter 2010 net earnings were above the 58 cents per share expected by Thomson Reuters-polled analysts. And the company even raised its full-year guidance to $1.75 to $2.00 from the $1.50 to $1.80 it had previously forecasted in February.

In addition, KBR will be handling even more duties for the U.S. Army after being awarded a contract in May to supply services as part of the current Logistics Civil Augmentation Program IV.

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