We can’t seem to get an indictment against Bill Utt, Bruce Stanski (former KBR), Bill Bodie, or any other KBR executives, including that damn Heather Browne. Indictments for their part in the fraud and corruption that is LOGCAP III. But we got the next best thing. WE hit them in the wallet. Because of YOU…yes YOU… the YOU who continued to report wrongdoing. The YOU who would not accept the “it’s a war zone-it’s good enough” response. The YOU who chose to do the right thing to protect our soldiers and civilians….YOU made a difference. Because of the reporting and the testifying and the increased Congressional scrutiny, the DoD appears to be backing away from their favorite “fair haired” contractor….. KBR! KBR now has to compete for contracts when eligible to bid. And they don’t seem to be winning a lot of major contracts.
I’m positive that Bill Utt and others were all doing the “KBR happy dance” at KBR HQ upon the announcement of DCAA April Stephenson’s “reassignment”. She was worthy adversary against KBR’s alleged government fraud. (click HERE for my version of the KBR Happy Dance. Do not click if you are easily offended!)
Now I can tell you there is at least one person (me) out there doing the “happy dance” that KBR profits are down 14% and their stock prices are responding accordingly. I don’t want to hear about all the people who’s retirement accounts are affected. That’s what happens when you dance with the devil or invest in KBR! I run the daily and annual KBR stock quotes in my right side bar or you can click HERE to see what’s going on.
KBR 3Q falls with less work in government, Iraq
Associated Press, 10.29.09, 11:05 AM EDT
HOUTSON — Engineering and construction company KBR Inc. said Thursday its third-quarter profit fell 14 percent as revenue declined in its biggest business, government and infrastructure, and in its military work in Iraq as the U.S. has fewer projects there.
Net income of $73 million, or 45 cents per share, was down from $85 million, or 51 cents per share, in the same quarter last year. Analysts surveyed by Thomson Reuters expected earnings of 41 cents per share.
Revenue for the quarter ended Sept. 30 was $2.84 billion, down 6 percent from $3.02 billion in the same three months of 2008.
Analysts expected revenue of $2.92 billion.
Revenue at KBR ( KBR - news - people )’s government and infrastructure business fell 28 percent to $1.38 billion from $1.76 billion.
Bill Utt, chairman, president and CEO, said revenue for the Army’s Logistics Civil Augmentation Program, or Logcap, was down 15 percent in the quarter, “consistent with reduced activity levels in Iraq.”
On Monday, Stifel, Nicolaus downgraded KBR to “Hold” from “Buy” on an assessment that profit could decline significantly this year as the U.S. military becomes less active in Iraq.
Backlog at the end of September was $13.5 billion, up 9 percent from the second quarter with “no material project cancellations” during the quarter, KBR said.
Shares of KBR slipped 8 cents to $21.13 in morning trading.
Go back to Bill Utt’s statement in July which he said KBR was not appealing the US decision to give it to 2 others. He said that since there was a engineering firm KBR aquired that would be picking up the slack left by KBR not getting Logcap 4. He also said KBR profits from Afghanistan were 11%. KBR has not left yet. How much more of a loss will there be once it finishes Logcap 3? It also does not help the bottom line by just recently increasing the unpaid time off to 5 days for minor safety violations like not wearing a seatbelt. No pay to employee means less profit. How many have had time off? KBR HR says the rules were always there but never enforced. They have never shown anyone that I know the rules that cover this nor their date of implementation. Has anyone ever seen them actually? Kudos go to those 2 ex soldiers who stopped KBR from getting that road contract in that Texas town. A gross loss of $60 million there.
Another thing I have huge concerns about is that KBR is going to charge back to the DoD that jury award that ASCO received in their suit against KBR. I think the number is around $27M or more.
They will probably call it a cost of doing business. That disturbs me! Hopefully Congress is paying attention here!
http://www.kbr.com/news/press_releases/2008/08/26/Court_Reduces_Award_in_Final_Judgment_in_Associated_Construction_Company_WLL_Case_Against_KBR.aspx
Ms Sparky said,on October 30th, 2009 at 5:20 am Another thing I have huge concerns about is that KBR is going to charge back to the DoD that jury award that ASCO received in their suit against KBR.
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It also gives the DoD, DoJ and others an incentive not to investigate, indict or prosecute criminal and civil actions. This may explain alot for example: “They ripped us off for XXXX million but even if we win it will cost us XXXXXXX million after they charge the contract for the additional costs incurred for the award + legal fees. Wonder if legal fees are charged back to the “customer” at cost+3?
KBR Down 10.5% Since SmarTrend’s Sell Recommendation
http://www.tradingmarkets.com/.site/news/Stock%20News/2678105/
Just an update. KBR has lost 25% of it’s value just since Oct 22, 2009.
Oct 22 closing: 24.49
Dec 07 closing: 18.28
Sounds like their ethics issues and business practices might be catching up with them.