Fluor Reports Record New Awards of $9.3 Billion, Boosting Backlog to $30.2 Billion

Tuesday, Jul 27, 2010

Fluor Corporation (NYSE: FLR) today announced financial results for its second quarter ended June 30, 2010. Net earnings attributable to Fluor were $157 million, or $0.87 per diluted share, compared with $169 million or $0.93 per diluted share for the same period last year. Segment profit for the quarter was $262 million, compared with $309 million in the second quarter of 2009, driven mainly by strength in Industrial & Infrastructure and Power which was offset by lower results in Oil & Gas. Segment margin was 5.1 percent, compared with 5.8 percent a year ago. Revenue was $5.2 billion in the second quarter of 2010, just under last year’s $5.3 billion.

“Looking ahead to the balance of 2010, we see the potential for continued strong new awards in the second half, especially in our mining, oil and gas, and infrastructure businesses.”

New project awards for the second quarter were a record $9.3 billion, surpassing the company’s previous high for a single quarter, well above the quarterly run rate of approximately $3 billion in the prior three quarters. Awards in the quarter included $7.2 billion in Industrial & Infrastructure driven by new mining and metals projects, $1.0 billion of Oil & Gas awards and approximately $600 million of Government awards. Consolidated backlog rose to $30.2 billion, up from $25.7 billion last quarter, and compared with $30.9 billion a year ago.

Corporate G&A expense for the quarter was $28 million, down from $42 million in the second quarter of 2009. The lower G&A expense is primarily due to lower compensation costs. Fluor’s financial condition continues to be very strong, with cash plus current and noncurrent marketable securities totaling $2.1 billion, which compares with $2.3 billion a year ago.

“Fluor has once again demonstrated the tremendous power of its diversified business model with the recognition of record new awards and growing backlog led by our global mining business,” said Chairman and Chief Executive Officer Alan Boeckmann. “Looking ahead to the balance of 2010, we see the potential for continued strong new awards in the second half, especially in our mining, oil and gas, and infrastructure businesses.”

Source: Business Wire