WAR PIGS -- UP 284 PERCENT

On Friday, Halliburton announced that KBR -- the division responsible for carrying out Pentagon contracts -- experienced a 284% increase in operating profits during the second quarter of 2005.

Halliburton's press release says that the spike in profits was due primarily to the Pentagon's payment of "award fees" for KBR work in the Middle East.

Government and Infrastructure (G&I) operating income for the second quarter of 2005 was $73 million compared to $19 million in the second quarter of 2004, a 284% increase.

The increase primarily resulted from positive developments related to LogCAP award fees. G&I continues to receive favorable job performance ratings for its work supporting the troops in Iraq.

As a result, G&I recognized $29 million of income for recent awards on completed work, and increased the award fee accrual rate for its ongoing work under the LogCAP contract from 50% to 72% during the quarter.

G&I also realized improved performance at the DML shipyard, partially offset by the completion of the RIO contract in Iraq.

-- Haliburton Press Release (.pdf) announcing 2005 second quarter results