KBR CFO: US Defense Dept Won't Suspend Co Over Bribe Case
February 25 2009 - 12:15PM
Dow Jones News
KBR Inc. (KBR) won't be prevented from pursuing new U.S. Defense
Department contracts or have existing work suspended over the
company's settlement of federal charges involving the bribing of
Nigerian officials, the company's chief financial officer said
Wednesday.
KBR and former parent Halliburton Co. (HAL) agreed to
settlements totaling $579 million earlier this month, over bribes
paid to Nigerian government officials that helped KBR secure
construction work in the country.
The settlement is by far the largest penalty paid by a company
for violating the Foreign Corrupt Practices Act, which prohibits
bribery by U.S. companies working abroad.
KBR secures a large portion of its revenue from military
contracts, but won't face formal repercussions stemming from the
settlement, CFO Kevin DeNicola said Wednesday, during a conference
call with analysts.
KBR reported fourth-quarter net income of $88 million, or 54
cents a share, including a 12-cent charge from the settlement.
Analysts had given an average earnings estimate of 40 cents a
share, according to Thomson Reuters.
-By Brian Baskin, Dow Jones Newswires; 201-938-2062;
brian.baskin@dowjones.com