KBR Reports Strong Earnings for 2008
KBR was one of the top ten contractors by revenue for 2008 as we wrote about here. It reported its 2008 earnings this week. The Houston Chronicle writes that revenue was up almost $3 billion to $11.6 billion. The company’s net income rose only $17 million, though, partly due to a charge related to the fine paid for actions related to the Nigerian bribery case when they were part of Halliburton. KBR primarily makes their money off of providing logistical and support services to the U.S. military and other corporations. They also do a lot of construction of large facilities. KBR, of course, has some stigma attached to it as Vice President Cheney ran the corporation in the Nineties. They also face questions as a hot water system they used in Iraq may be responsible for the accidental electrocutions of soldiers. If the U.S. under Obama does pull forces back out of Iraq the company may face future downturns in revenue as there will be less support required.
Matthew Potter works supporting US Army aviation programs. He holds degrees in history as well as studying at the Defense Acquisition University. He has written for Seeking Alpha and at his own website, Defense Procurement News.
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