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I will now turn the call over to Mr. Bill Utt. Bill?Bill Utt Thanks, Rob, and good morning, everyone. It is good to be with you this morning to discuss KBR’s 2011 earnings guidance as well as our two recent acquisitions, the Roberts & Schaefer Company and MWKL. As we see our markets and opportunities today, we expect KBR’s full year 2011 earnings per diluted share to be in the range of $2.05 to $2.30. This includes the Roberts & Schaefer and the reduced minority interest for MWKL. Sue will provide further details in her comments. Now, let me discuss the two recently announced acquisitions. First, KBR closed and press released the Roberts & Schaefer Company acquisition on December 21, 2010. Roberts & Schaefer, a Chicago-based company, is a global leader in engineering, procurement and construction services for bulk material handling and processing systems. The company provides services and associated processing infrastructure to customers in the mining and minerals, power, industrial, refining, aggregates, precious and base metals industries. The purchase price was $280 million, plus preliminary net working capital of $12 million with final adjustment after closing. In addition to its Chicago headquarters, Roberts & Schaefer has major operations located in Salt Lake City; Brisbane, Australia; Gliwice, Poland; Jakarta, Indonesia; and Ahmedabad, India. The Roberts & Schaefer business also includes Soros, a provider of material handling solutions for port and marine applications, and Separator, providing services to coal, minerals and power markets in Eastern Europe. The Roberts & Schaefer acquisition brings to KBR the following. It expands KBR’s existing EPCM capabilities in the minerals market which at the time of the transaction were largely in the Australian market. To new geographies and customers, as well as to provide a broader services offering built around acquired bulk material handling capabilities of Roberts & Schaefer.
Roberts & Schaefer also strengthens KBR existing port and marine bulk material handling capabilities to the acquisition of Soros business.Finally the acquisition adds to KBR’s power and industrial offering through bulk materials handling specialization for solid fuel-fired boiler and pollution control systems. We believe that Roberts & Schaefer acquisition is an attractive bid and addresses attractive market adjacencies for KBR as it significantly enhances and broadens our minerals power and industrial offerings. This is consistent with the strategic objectives we discussed at our recent Analyst and Investor Day for KBR’s infrastructure and minerals business unit as well as our power and industrial business unit. Roberts & Schaefer’s capabilities essentially focus on three distinct markets, mining, conveyance and handling and power. For mining this includes fee and technical studies as well turnkey EPC capabilities from equipment design and procurement to plant construction, testing and commissioning. With regards to conveyance and handling, these capabilities include the design and installation of systems for material transportation ranging from mine to processing plant, ship and rail loading and unloading and stockpiling and blending. For KBR’s power and industrial customers this enhances the full suite of KBR services for power plants including activated carbon scrubbers, ash, gypsum and mercury removal, flue gas desulfurization systems, biofuels and coal blending. The Roberts & Schaefer acquisition is expected to contribute approximately $0.11 per diluted share to KBR during 2011. In regards to MWKL, KBR announced on January 3, 2011 that it completed the purchase of 44.94% interest in MWKL Limited from JGC Corporation for approximately $165 million. With the completion of the transaction MWKL again becomes a wholly owned subsidiary of KBR the MWKL organization which has operated in the United Kingdom for 60 years will continue its operations in Greenford. Read the rest of this transcript for free on seekingalpha.com