Morrison Knudsen Corp said itsearnings for 1987 are likely to be lower than those for 1986
due to lower than expected growth in engineering and
construction and a previously-predicted decline in earnings of
its National Steel and Shipbuilding unit.
    The company earned 39.4 mln dlrs in 1986, including pretax
gains of 11.5 mln dlrs from pension income and 7,400,000 dlrs
from the settlement of vested pension obligations, down from
41.5 mln dlrs in 1985.
    It said "Lower than expected levels of new work booked in
the last quarter of 1986 and the first two-plus months of this
year have delayed the expected growth in the engineering and
construction area."  The company said it will remain profitable
in 1987 and results should strengthen as the year progresses. 
It attributed the decline in new work to more stringent bidding
standards and a competitive market.
 Reuter
