KBR Inc. (KBR: Quote) announced that it has lowered its fiscal year 2012 adjusted earnings per share outlook as a result of significant project charges the company expects to take in the its Minerals and U.S. Construction businesses, both in the fourth quarter of 2012 as well as higher than expected labor cost absorption expenses.
The company now expects fiscal year 2012 earnings per share to be between $1.95 and $2.10 excluding the third quarter 2012 goodwill impairment charge, compared to prior outlook of $2.60 – $2.80 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $2.66 per share for fiscal 2012. Analysts’ estimates typically exclude special items.
In addition, the company expects fiscal year 2013 earnings per share to be between $2.45 and $2.90. Analysts polled by Thomson Reuters expect the company to report earnings of $2.96 per share for fiscal 2013.
The company expects fiscal year 2013 capital expenditures to be between $80 million and $100 million, General and administrative expense of $230 million and $250 million.
“As we look forward to 2013, as a result of the delays in late 2012 awards, we expect the first half of 2013 to be in the range of $0.90 to $1.10 with the second half progressively stronger as existing projects continue to ramp-up, other projects close out and new awards pick-up during the first half of 2013. Overall, the guidance does not include any material 2013 earnings contributions from major new Hydrocarbons awards,” said Bill Utt, Chairman, President and Chief Executive Officer.
KBR closed Thursday’s regular trading at $32.00, up $0.74 or 2.37%. However, in the after-hours, the stock is down $2.80 or 8.75%.
To receive FREE breaking news email alerts for KBR Inc and others in your portfolio
by RTT Staff Writer
For comments and feedback: editorial@rttnews.comBusiness News