ConDig (31-Oct-17).  KBR Inc returned to profit in the third quarter of this year amid improved margins in certain divisions that offset a slight dip in revenue.

The Houston-based engineering and construction company posted net income of $45 million compared with a net loss of $63 million in the same period last year following $126 million in charges on two projects.

Consolidated revenue in the third quarter was $1 billion compared with $1.1 billion in the third quarter of 2016.

Revenue edged lower following lower activity on various projects in the company’s engineering and construction division, while this was partially offset by acquisitions and organic growth in its government services division.

KBR reported that equity in earnings improved to $23 million from $19 million in the prior year quarter, driven by growth in its Affinity joint venture in the UK within its government services segment.

The company said that it has increased its full year 2017 fully diluted adjusted earnings per share guidance to a range of $1.35 to $1.50 per share from a previous range of $1.25 to $1.45.

“We are pleased to once again report strong earnings with continued good performance across all business segments. In particular, our Technology & Consulting segment delivered exceptional margins in the quarter,” said Stuart Bradie, KBR president and ceo. 

“Our strategy to grow our Government Services business continues to be successful, including recently winning over a billion dollars in contracts to provide base operations support services at US Naval bases.”