UPDATE 2-KBR 3rd-qtr profit up, nudges 2010 guidance higher

* Q3 EPS 62 cents versus 43 cents expected by Wall St

* Q3 revenue down 14 pct at $2.46 bln

* Company sees 2010 EPS in upper half of $1.75-$2.00 range

* Shares off 1 cent
(Adds backlog, analyst comment, updates shares)

SAN FRANCISCO, Oct 28 (BestGrowthStock) – U.S. engineering company KBR
Inc (KBR.N: ) reported a better-than-expected 33 percent rise in
profit on Thursday, helped by growth in its oil and gas business
and an unexpected payment from the U.S. military.

Analysts said early receipt of the award fee meant KBR’s
defense unit did not decline as much as they had expected, which
was a big contribution to the company’s strong profit growth,
along with lower costs.

Third-quarter net profit rose to $97 million, or 62 cents per
share, from $73 million, or 45 cents per share, a year earlier.
Revenue fell 14 percent to $2.46 billion.

Analysts had expected profit of 43 cents a share on revenue of
$2.54 billion, according to Thomson Reuters I/B/E/S.

KBR’s $12.3 billion backlog of work was flat compared with the
previous quarter, which was better than some analysts had expected
due to strength in liquefied natural gas projects.

“We are encouraged by the stronger than expected new award
flow,” analysts at Simmons & Co said.

The Houston-based company said it now expects 2010 profit per
share to be in the upper half of its anticipated $1.75 to $2.00
range. Analysts have been looking for $1.85 per share.

In early afternoon trade on the New York Stock Exchange, KBR
shares had fallen 1 cent to $24.71. They are up 30 percent in
2010, versus a 9 percent gain for sector leader Fluor Corp
(FLR.N: ).
(Reporting by Braden Reddall in San Francisco, editing by Gerald
E. McCormick, Phil Berlowitz)

UPDATE 2-KBR 3rd-qtr profit up, nudges 2010 guidance higher