QUOTE AND NEWS
SeekingAlpha  Jul 22  Comment 
Reuters  Jul 5  Comment 
* Transaction was funded by utilizing KBR's existing line of credit facility and about $200 million in cash
Reuters  May 23  Comment 
* Wyle will become a KBR business unit within KBR's government services segment
SeekingAlpha  May 12  Comment 
Benzinga  May 2  Comment 
Johnson Rice & Co. has downgraded KBR, Inc. (NYSE: KBR) to Hold from Buy, citing "increased uncertainty" around new awards. Analyst Martin Malloy noted that KBR may not win the EPC (engineering, procurement and construction) contract for the...
Reuters  Apr 1  Comment 
* Report links oil companies to corrupt practices (Adds KBR statement)
Benzinga  Mar 28  Comment 
Goldman Sachs’ Jerry Revich upgraded the rating for KBR, Inc. (NYSE: KBR) from Sell to Neutral, while raising the price target from $12 to $16. The analyst noted that the company’s turnaround strategy had started yielding results. KBR’s...
Benzinga  Mar 28  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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