Engineering and construction firm KBR Inc. (NYSE: KBR) reported that its first fiscal quarter profit rose 7.4 percent on Friday, helped by government and infrastructure operations for Iraq related contracts.
Net income at the Houston-based Halliburton spin-off company was $28 million, or 17 cents per share for its fiscal first quarter. The results compare to a net income of $26 million, or 19 cents per share in the same period last year.
The firm also posted revenue of $2.3 billion, slightly higher than revenues of $2.2 billion in 2006.
Analysts, on average, had expected earnings of 24 cents per share and a revenue of $2.25 billion, according to a poll by Thomson Financial.
The company redefined its business segments after it split from Houston-based ngineering contractor Halliburton Co. (NYSE: HAL) in April.
Moving forward as an independent company, the firm now operates a Government and Infrastructure unit, Energy and Chemicals, and Ventures segments.
Its strongest performing segment was the government and infrastructure unit, which posted an operating income of $55 million. An increase of $3 million was realized due to Iraq related contracts.
The Energy and Chemicals operating income was down to $13 million in the first quarter of 2007 compared to an operating income of $44 million in the quarter a year ago. The decrease in operating income is largely due to a $20 million charge related to the BRC joint venture in Algeria, it said.
Ventures operating loss for the first quarter of 2007 was $6 million compared to operating loss of $36 million in the first quarter of 2006. The operating loss in the first quarter of 2006 was primarily driven by a $26 million impairment charge on the Alice Springs-Darwin railroad project in Australia.
Halliburton spun off about 20 percent of KBR through an IPO in 2006 and divested the rest last month.