Fluor Receives Adverse Ruling on Greater Gabbard Project
IRVING, Texas -- November 17, 2012
Fluor today announced that the company received an adverse decision from an
arbitration panel regarding its claims for additional compensation related to
the Greater Gabbard Offshore Wind Farm Project.
Through its claims, the company sought to recover compensation for schedule
and cost impacts arising from delays, disruption and productivity issues which
the company believes were attributable to the client and other third parties.
As a result of the decision, Fluor expects to record a pre-tax charge of
approximately $400 million in the fourth quarter, which was not considered in
its most recent earnings guidance for 2012. With the project substantially
complete, the decision is not expected to have a material adverse impact on
“Fluor delivered a quality project, and we are extremely disappointed with
this unexpected decision, especially considering recent statements that
acknowledge that all 140 turbines are commissioned and exporting electricity,
and the overall performance is more than 10 percent ahead of the client’s
expectations,” said Chairman and Chief Executive Officer David Seaton.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the
world's most challenging and complex projects. Founded in 1912, the company
was started by John Simon Fluor Sr. with a modest investment of $100. Since
those humble beginnings, the company has grown into one of the largest
engineering & construction companies in the world. Fluor is celebrating its
100^th anniversary during 2012.
Today, through its global network of offices on six continents, the company
provides comprehensive capabilities and world-class expertise in engineering,
procurement, construction, commissioning, operations, maintenance and project
management. Headquartered in Irving, Texas, Fluor is a FORTUNE 200 company and
had revenue of $23.4 billion in 2011. For more information, visit
www.fluor100.com and www.fluor.com.
Forward-Looking Statements: This Press Release contains forward looking
statements regarding the expected accounting and financial effects of the
arbitrators’ decision on the Company’s claims relating to the Greater Gabbard
Project. Actual results may vary based on numerous factors including final
determination of costs and recoveries relating to the project, foreign
currency adjustments and tax and accounting treatment of these items.
Keith Stephens, 469-398-7624
Brian Mershon, 469-398-7621
Ken Lockwood, 469-398-7220
Jason Landkamer, 469-398-7222
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