Q4 2010 Earnings Call Transcript

Transcript Call Date 01/13/2011

Operator: Good day, everyone, and welcome to the KBR 2011 Earnings Guidance Conference Call hosted by KBR. This call is being recorded. As a reminder, your lines will be in a listen-only mode for the duration of the call. There will be a question-and-answer session immediately following prepared remarks. You will receive instructions at that time.

For opening remarks and introductions, I would like to turn the call over to Mr. Rob Kukla, Director of Investor Relations. Please go ahead, sir.

Rob Kukla, Jr. - Director, IR: Thank you, Paula. Good morning and welcome to today’s conference call to discuss KBR's 2011 earnings per share guidance as well as KBR’s two recently announced acquisitions, the Roberts & Schaefer Company and MWKL. Today's call is also being webcast and a replay will be available on KBR's website for seven days.

Joining me today are Bill Utt, Chairman, President and Chief Executive Officer and Sue Carter, Executive Vice President and Chief Financial Officer.

We will welcome questions after we complete our prepared remarks.

Before turning the call over to Bill, I would like to remind our audience that today's comments may include forward-looking statements reflecting KBR's views about future events and their potential impact on performance. These matters involve risks and uncertainties that could impact operations and financial results, and cause our actual results to differ from our forward-looking statements. These risks are discussed in KBR's Form 10-K for the year ended December 31, 2009, KBR's quarterly reports on Forms 10-Q and KBR's current reports on Forms 8-K.

I will now turn the call over to Mr. Bill Utt. Bill?

William P. Utt - Chairman, President and CEO: Thanks, Rob, and good morning, everyone. It is good to be with you this morning to discuss KBR’s 2011 earnings guidance as well as our two recent acquisitions, the Roberts & Schaefer Company and MWKL.

As we see our markets and opportunities today, we expect KBR’s full year 2011 earnings per diluted share to be in the range of $2.05 to $2.30. This includes the Roberts & Schaefer and the reduced minority interest for MWKL. Sue will provide further details in her comments.

Now, let me discuss the two recently announced acquisitions. First, KBR closed and press released the Roberts & Schaefer Company acquisition on December 21, 2010. Roberts & Schaefer, a Chicago-based company, is a global leader in engineering, procurement and construction services for bulk material handling and processing systems. The company provides services and associated processing infrastructure to customers in the mining and minerals, power, industrial, refining, aggregates, precious and base metals industries. The purchase price was $280 million, plus preliminary net working capital of $12 million with final adjustment after closing.

In addition to its Chicago headquarters, Roberts & Schaefer has major operations located in Salt Lake City; Brisbane, Australia; Gliwice, Poland; Jakarta, Indonesia; and Ahmedabad, India. The Roberts & Schaefer business also includes Soros, a provider of material handling solutions for port and marine applications, and Separator, providing services to coal, minerals and power markets in Eastern Europe.

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