KBR issues 2010 guidance; says Iraq work to drop

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HOUSTON (AP) — Construction and engineering company KBR forecast Thursday that it will earn $1.60 to $1.80 per share for fiscal 2010 and that its revenue from U.S. government contracts in Iraq will fall by half.

Analysts surveyed by Thomson Reuters forecast earnings of $1.74 per share, in the middle of the company’s predicted range.

KBR said its profit estimate includes the 50 percent drop in revenue from providing a wide range of services to U.S. troops and government officials in Iraq. The contract, known as LogCAP, covers everything from construction to laundry service.

KBR said the lower revenue forecast was based on reports that the government plans to cut its troop level in Iraq to 35,000 to 50,000 personnel by the end of summer, from 120,000.

Shares of KBR rose 70 cents, or 3.5 percent, to $20.70 in late morning trading.