QUOTE AND NEWS
Forbes  Sep 9  Comment 
Looking at the universe of stocks we cover at Dividend Channel, on 9/13/16, Motorola Solutions Inc. (NYSE: MSI), KBR Inc (NYSE: KBR), and Knoll Inc (NYSE: KNL) will all trade ex-dividend for their respective upcoming dividends. Motorola Solutions...
WA Business News  Aug 22  Comment 
CIMIC Group has launched legal action in the United States against Chevron over cost blowouts on jetty and marine structures it built at the Gorgon LNG project on Barrow Island.
Benzinga  Aug 15  Comment 
D.A. Davidson said KBR, Inc. (NYSE: KBR)'s planned $300 million purchase of HTSI, a division of Honeywell International Inc. (NYSE: HON), would extend its breadth of long-term contracted government services. "With the acquisition of HTSI, the...
Benzinga  Aug 15  Comment 
The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday August 12 through Sunday August 14, 2016:   Honeywell to Sell Honeywell Technology Solutions to KBR for $300M The Deal: Honeywell (NYSE: HON)...
newratings.com  Aug 12  Comment 
MORRISTOWN (dpa-AFX) - Diversified technology and manufacturing company Honeywell (HON) said Friday that it would sell its Honeywell Technology Solutions Inc., or HTSI, to KBR Inc. (KBR) for about $300 million. The deal, which has no impact to...
SeekingAlpha  Aug 10  Comment 




RELATED WIKI ARTICLES
 

KBR, Inc. (KBR) is an international construction, engineering, and services company supporting the energy, government, and civil infrastructure sectors.[1] The Company operates in four segments:Hydrocarbons; Infrastructure, Government & Power ("IGP"); Services; and Other.[1] Revenue from operations in Iraq were 29%, 35%, and 43% of revenue in 2010, 2009, and 2008 respectively, marking decreasing revenues as the war in Iraq winds down.[1] Despite these losses, KBR is partially sheltered from the recession in the United States as a result of extensive operations abroad in countries such as Kazakhstan, Saudi Arabia, and Australia.[2]

Business Growth

Almost 80% of KBR's revenue comes from operations abroad, including operations in Iraq and Afghanistan.[2] As the wars in these two theaters come to an end, revenue will decrease. Revenue from IGP, the segment that deals with contracting in war zones, decreased by 32% between 2009 and 2010.[1] Revenue decreased from $6.3 billion to $4.3 billion in 2009 and 2010 respectively.[1]

Trends and Forces

Infrastructure, Government and Power Revenue Contingent Upon Government Spending

Approximately half of KBR's revenues come from government contracts in war zones such as Afghanistan and Iraq.[1] As operations in Iraq came to an end, KBR incurred a $2 billion loss as a result of decreasing U.S. military need.[1] Furthermore, as international allies end their operations in these theaters, they will have to rely on KBR less for material support.[1]

The Effects of the U.S. Recession are Partially Offset by Operations Abroad

Revenue from international operations has increased to nearly 80% of KBR's total earnings.[1] Though KBR is largely reliant on U.S. and Western government contracts, it has expanded into areas such as Central Asia and the Persian Gulf.[2] These projects namely include building infrastructure for emerging nations; KBR has announced multi-billion dollar contracts to help build mines in Australia and with Rio Tinto and Hancock Prospecting.[2]

Competition

KBR competes directly with a growing industry of government contracts that emerged to take advantage of spending in the aftermath of the terrorist attacks of 9/11, as well as traditional engineering and construction companies. These companies include:

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 KBR 2010 Annual Report
  2. 2.0 2.1 2.2 2.3 KBR ranked No. 10 on the Washington Technology 2011 Top 100
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