DOW JONES NEWSWIRES
Fluor Corp.'s (FLR) second-quarter earnings fell 19% as revenue
fell and a year-ago gain made for difficult comparisons, but the
bottom line topped Wall Street expectations.
"Fluor's focus on specific near-term prospects in its
diversified end markets has once again allowed us to record
substantial new bookings in a very challenging economic
environment," said Chairman and Chief Executive Alan Boeckmann.
"While we have posted strong results to date, we remain sensitive
to the pace of global economic recovery which could impact the
timing of future new awards."
The company has been resilient in the recession, though it
lowered its 2009 earnings outlook in May to reflect the
cancellation of $2.1 billion in Kuwaiti contracts. That view was
reiterated Monday.
Fluor also stands to benefit from the U.S. stimulus package and
growth in nuclear energy, while the resurgence of oil prices may
also trickle down to the bottom line.
The company reported quarterly earnings of $169.3 million, or 93
cents a share, compared with $208 million, or $1.17 a share, a year
earlier. The year-ago period included a 27-cent gain from a
joint-venture interest.
Revenue fell 8.3% to $5.29 billion.
Analysts polled by Thomson Reuters expected earnings of 91 cents
a share and revenue of $5.81 billion.
The company noted it cut overhead costs almost a third to $42
million.
New project awards rose 5.9% to $6.77 billion. Backlog was
$30.89 billion, down 6.4% from a year earlier but up almost the
same percentage from March 31.
The oil-and-gas segment posted a 7% increase in profit, as wider
margins offset lower project activity. Earnings at the industrial
and infrastructure division dropped 72% on the prior-year gain
while the government segment's income tripled.
Last week, rival Foster Wheeler Ltd. (FWLT) reported weaker
second-quarter results on lower demand for engineering and
construction and construction projects. However, the earnings
handily beat Wall Street expectations.
In after-hours trading, Fluor shares were up 0.5% at $57.77. The
stock has doubled since late November but remains down nearly a
third from its 52-week high nearly a year ago.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com