KBR Pays $2.5M Penalty Settling 2013 Financial Overstatement

The U.S. Securities and Exchange Commission announced Monday that Houston-based KBR employed insufficient financial controls and procedures that resulted in the global engineering and construction company overstating in publicly-filed documents a projected $459 million in scheduled revenues in 2013.

In official records made public Monday, the SEC reports that KBR overstated a key financial performance metric called “backlog” that allows companies to inform investors about guaranteed work contracts. The backlog reports are used by investors and analysts to help gauge future financial performance.