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Fluor Reports First Quarter Results

  Fluor Reports First Quarter Results

  *EARNINGS PER SHARE OF $1.02, UP FROM $0.91 PER SHARE A YEAR AGO
  *SEGMENT PROFIT UP 16 PERCENT, INCLUDING A 42 PERCENT RISE IN OIL & GAS
  *NEW AWARDS OF $6.5 BILLION; ENDING BACKLOG OF $37.5 BILLION

Business Wire

IRVING, Texas -- May 02, 2013

Fluor Corporation (NYSE: FLR) today announced financial results for its first
quarter ended March 31, 2013. Net earnings attributable to Fluor for the first
quarter were $166 million, or $1.02 per diluted share, up from $155 million,
or $0.91per diluted share in the first quarter of 2012 which included the
benefit of a low tax rate. Consolidated segment profit for the quarter was
$294 million, and revenue was $7.2 billion, up 16 percent and 14 percent,
respectively, from the first quarter of 2012. Current quarter results were
driven by growth in the Oil & Gas and Industrial & Infrastructure segments.

New awards for the first quarter were substantial at $6.5 billion, including
$3.1 billion in Oil & Gas and $2.2 billion in Industrial & Infrastructure.
Consolidated backlog at the end of the quarter was $37.5 billion, down 12
percent from a year ago mainly due to a downturn in the mining and metals
market.

“We are pleased with our financial results for the quarter, including $6.5
billion of new awards,” said Chairman and Chief Executive Officer David
Seaton. “We are particularly encouraged by the strength of our Oil & Gas
business.”

Corporate G&A expense for the first quarter of 2013 was $33 million, which
compares favorably with $38 million in the first quarter of 2012. Fluor’s
financial condition remains strong, with cash plus current and noncurrent
marketable securities totaling $2.5 billion at the end of the first quarter.

Outlook

The Company is maintaining its EPS guidance for 2013 at the previously
announced range of $3.85 to $4.35 per diluted share. This is based on our
positive expectations for Oil & Gas and Industrial & Infrastructure overall,
which have the potential to offset uncertainty and delays in mining and
metals.

Business Segments

Fluor’s Oil & Gas business reported segment profit of $105 million, generating
a 42percent increase from the first quarter of 2012. Revenue grew 36 percent
to $2.8 billion, compared with $2.0 billion last year. First quarter results
reflect growing contributions from upstream and petrochemical projects. New
awards for the segment totaled $3.1 billion in the quarter, including
petrochemical projects in the United States and China. Backlog at the end of
the first quarter rose to $18.6billion, up 11 percent from $16.8billion a
year ago.

The Industrial & Infrastructure group reported segment profit of $127 million,
up 12percent from $113 million in the first quarter of 2012. Revenue for the
segment was $3.1billion, compared with $3.0 billion a year ago. Segment
profit improvements were driven mainly by increased contributions from the
infrastructure business line. Segment new awards of $2.2 billion in the first
quarter were driven by large infrastructure programs, including the Tappan Zee
Bridge in New York and the Horseshoe road project in Texas. Backlog at the end
of the quarter was $16.0 billion, down from $23.3 billion a year ago, mainly
due to reduced mining and metals awards over the past year. As a result of an
organizational realignment, effective this quarter, financial results for the
Industrial & Infrastructure segment now include the operations and maintenance
business line, which was previously reported as part of the Global Services
segment.

Government posted segment profit of $41 million, compared with $35 million in
the first quarter of 2012, including higher LOGCAP IV award fees and the close
out of prior year indirect rates. Revenue for the quarter declined 12 percent
to $751 million, compared with $850million a year ago. Revenue for the
quarter was impacted by lower LOGCAP IV task order volume and lower activity
levels at the Savannah River site for the Department of Energy. New awards
totaled $756 million in the first quarter, driven primarily by the timing of
the release of LOGCAP IV task orders in Afghanistan. Backlog at the end of the
quarter was $964 million, compared with $695 million a year ago.

Segment profit for Global Services was $28 million in the first quarter
compared to $33million a year ago, and revenue for the quarter decreased 18
percent to $150 million. Results for the quarter were lower than last year due
to reduced contributions from the equipment business line. As noted above,
results for Global Services no longer include the operations and maintenance
business line, which is now reported as part of the Industrial &
Infrastructure segment. As a result of this change, there are no new awards or
backlog for the Global Services segment.

Fluor’s Power group reported a first quarter segment loss of $6.8 million,
which includes $15 million for the research and development expenses
associated with the Company’s majority ownership in NuScale. This compares
with a segment loss of $2 million, including $10 million of NuScale expenses,
a year ago. Revenue for the quarter increased substantially to $383million,
compared with $175million a year ago due to progress on gas-fired and solar
projects. New awards for the quarter were $448million, including an extension
of a long-term fossil power maintenance contract in Texas and the award of an
engineering, procurement and construction contract for a solar facility in
California. Segment backlog was $1.9 billion, up from $1.8 billion in the
first quarter of 2012.

First Quarter Conference Call

Fluor will host a conference call at 5:30 p.m. Eastern time on Thursday, May
2, which will be webcast live on the Internet and can be accessed by logging
onto http://investor.fluor.com. A supplemental slide presentation will be
available shortly before the call begins. The webcast and presentation will be
archived for 30 days following the call. Certain non-GAAP financial measures,
as defined under SEC rules, are included in this press release and may be
discussed during the conference call. A reconciliation of these measures is
included in this press release which will be posted in the investor relations
section of the Company’s website. In addition, recast historical financial
results for the last three years for the Industrial & Infrastructure and
Global Services segments, that reflect the realignment of the operations and
maintenance business line, can be found in the Fact Book posted to the
investor relations section of the Company’s website.

About Fluor Corporation

For more than 100 years, Fluor Corporation (NYSE: FLR) has partnered with its
clients to design, build and maintain many of the world's most challenging and
complex capital projects. Through its global network of offices on six
continents, more than 40,000 employees provide comprehensive capabilities and
world-class expertise in the fields of engineering, procurement, construction,
commissioning, fabrication, operations, maintenance and project management.
Today, the company serves a global client base in the energy, chemicals,
government, industrial, infrastructure, operations & maintenance,
manufacturing & life sciences, mining, power and transportation sectors.
Headquartered in Irving, Texas, Fluor ranks 124 on the FORTUNE 500 list and
had revenue of $27.6 billion in 2012. For more information visit
www.fluor.com.

Forward-Looking Statements: This release may contain forward-looking
statements (including without limitation statements to the effect that the
Company or its management "believes," "expects," "anticipates," "plans" or
other similar expressions). These forward-looking statements, including
statements relating to future backlog, revenue and earnings, expected
performance of the Company's business and the outlook of the markets which the
Company serves are based on current management expectations and involve risks
and uncertainties. Actual results may differ materially as a result of a
number of factors, including, among other things, failure to achieve projected
backlog, revenue and/or earnings levels; difficulties or delays incurred in
the execution of contracts, resulting in cost overruns or liabilities,
including those caused by the performance of the Company’s clients,
subcontractors, suppliers and joint venture or teaming partners; intense
competition in the global engineering, procurement and construction industry,
which can place downward pressure on the Company’s contract prices and profit
margins; the Company's failure to receive anticipated new contract awards and
the related impacts on revenues, earnings, staffing levels and costs; failure
to obtain favorable results in existing or future litigation or dispute
resolution proceedings; the cyclical nature of many of the markets the Company
serves, including the Company’s commodity-based business lines, and the
Company’s vulnerability to downturns; current economic conditions affecting
our clients, partners, subcontractors and suppliers; decreased capital
investment or expenditures, or a failure to make anticipated increased capital
investment or expenditures, by the Company’s clients; delays or defaults in
client payments; foreign economic and political uncertainties that could lead
to project disruptions, increased costs and potential losses; international
security risks; failure to meet timely completion or performance standards
that could result in higher costs, reduced profits or, in some cases, losses
on projects; risks or uncertainties associated with events outside of our
control, such as the effects of severe weather, which may result in project
delays, increased costs, liabilities or losses on projects; client
cancellations of, or scope adjustments to, existing contracts, including the
Company’s government contracts that may be terminated at any time, and the
related impacts on staffing levels and cost; the potential impact of certain
tax matters including, but not limited to, those from foreign operations and
ongoing audits by tax authorities; ; possible information technology
interruptions or inability to protect intellectual property; liabilities
arising for faulty engineering services; the impact of anti-bribery and
international trade laws and regulations; the availability of credit and
restrictions imposed by credit facilities, both for the Company and our
clients, suppliers, subcontractors or other partners; foreign exchange risks;
failure to maintain safe worksites; the impact of environmental, health and
safety regulations or other laws; possible limitations on bonding or letter of
credit capacity; and risks or uncertainties associated with acquisitions,
dispositions and investments. Caution must be exercised in relying on these
and other forward-looking statements. Due to known and unknown risks, the
Company’s results may differ materially from its expectations and projections.

Additional information concerning these and other factors can be found in
press releases as well as the Company's public periodic filings with the
Securities and Exchange Commission, including the discussion under the heading
"Item 1A. Risk Factors" in the Company's Form 10-K filed on February 20, 2013.
Such filings are available either publicly or upon request from Fluor's
Investor Relations Department: (469) 398-7220. The Company disclaims any
intent or obligation other than as required by law to update its
forward-looking statements in light of new information or future events.


FLUOR CORPORATION
CONSOLIDATED FINANCIAL RESULTS
(in millions, except per share amounts)
Unaudited
                                                              
CONSOLIDATED OPERATING RESULTS
                                                                  
THREE MONTHS ENDED MARCH 31                         2013          2012     
Revenue                                            $ 7,185.6      $ 6,290.1
Cost and expenses:
Cost of revenue                                      6,843.8        6,014.2
Corporate general and administrative expense         32.6           37.8
Interest expense (income), net                      2.9           (2.7     )
Total cost and expenses                             6,879.3       6,049.3  
Earnings before income taxes                         306.3          240.8
Income tax expense                                  93.0          63.6     
Net earnings                                         213.3          177.2
Less: Net earnings attributable to                  46.8          22.3     
noncontrolling interests
Net earnings attributable to Fluor Corporation     $ 166.5        $ 154.9    
Basic earnings per share
Net earnings                                       $ 1.02         $ 0.92
Weighted average shares                              162.4          168.9
Diluted earnings per share
Net earnings                                       $ 1.02         $ 0.91
Weighted average shares                              164.0          170.4
New awards                                         $ 6,511.7      $ 8,394.2
Backlog                                            $ 37,459.7     $ 42,453.4
Work performed                                     $ 7,035.7      $ 6,107.5


FLUOR CORPORATION
Unaudited
                                                                  
BUSINESS SEGMENT FINANCIAL
REVIEW
($ in millions)
                                                                       
THREE MONTHS ENDED MARCH 31      2013                  2012^(1) 
Revenue
Oil & Gas                       $ 2,769.3               $ 2,040.8
Industrial & Infrastructure       3,132.2                 3,041.7
Government                        751.2                   850.1
Global Services                   149.9                   182.6
Power                            383.0                 174.9    
Total revenue                   $ 7,185.6              $ 6,290.1  
                                                                       
Segment profit (loss) $ and
margin %
Oil & Gas                       $ 104.5       3.8  %    $ 73.4         3.6  %
Industrial & Infrastructure       126.9       4.1  %      113.5        3.7  %
Government                        41.3        5.5  %      35.3         4.2  %
Global Services                   27.7        18.5 %      33.0         18.1 %
Power                            (6.8    )   (1.8 )%    (1.9     )   (1.1 )%
Total segment profit $ and      $ 293.6       4.1  %    $ 253.3        4.0  %
margin %
                                                                       
Corporate general and             (32.6   )               (37.8    )
administrative expense
Interest (expense) income,        (2.9    )               2.7
net
Earnings attributable to         48.2                  22.6     
noncontrolling interests
Earnings before taxes           $ 306.3                $ 240.8    
                                                                       
                                                                       

(1) The company’s operations and maintenance activities, previously included
in the Global Services segment, have been integrated into the Industrial &
Infrastructure segment. Revenue and segment profit for 2012 have been recast
accordingly.

                                                               
FLUOR CORPORATION
Unaudited
                                                                  
SELECTED BALANCE SHEET ITEMS
($ in millions, except per share amounts)
                                                    MARCH 31,     DECEMBER 31,
                                                     2013         2012    
Cash and marketable securities, including           $ 2,494.4     $  2,610.0
noncurrent
Total current assets                                  6,260.8        6,094.1
Total assets                                          8,463.0        8,276.0
Total short-term debt                                 18.5           20.8
Total current liabilities                             3,920.7        3,887.1
Long-term debt                                        496.3          520.2
Shareholders' equity                                  3,485.0        3,341.3
                                                                  
Total debt to capitalization % (based on              12.9    %      13.9    %
shareholders' equity)
Shareholders' equity per share                      $ 21.40       $  20.58
                                                                  
                                                                  
SELECTED CASH FLOW ITEMS
($ in millions)
                                                                  
THREE MONTHS ENDED MARCH 31                          2013         2012    
                                                                  
Cash utilized by operating activities               $ (21.7   )   $  (47.1   )
                                                                  
Investing activities
Net (purchases) sales and maturities of               (25.1   )      (133.2  )
marketable securities
Capital expenditures                                  (56.9   )      (54.3   )
Proceeds from disposal of property, plant and         15.7           37.2
equipment
Investments in partnerships and joint ventures        (7.4    )      (0.4    )
Consolidation of a variable interest entity           24.7           -
Acquisitions                                          (7.7    )      -
Other items                                          4.4          (1.5    )
Cash utilized by investing activities                (52.3   )     (152.2  )
                                                                  
Financing activities
Repurchase of common stock                            -              (27.5   )
Dividends paid                                        -              (21.4   )
Repayment of 5.625% Municipal Bonds                   (17.8   )      -
Repayment of convertible debt and notes payable       (8.6    )      (0.3    )
Distributions paid to noncontrolling interests,       (17.7   )      (18.4   )
net of capital contributions
Other Items                                          1.0          3.4     
Cash utilized by financing activities                (43.1   )     (64.2   )
                                                                  
Effect of exchange rate changes on cash              (22.6   )     24.4    
                                                                 
Decrease in cash and cash equivalents               $ (139.7  )   $  (239.1  )
                                                                  
                                                                  
                                                                  
Depreciation                                        $ 54.6       $  51.8    


FLUOR CORPORATION
Supplemental Fact Sheet
Unaudited
                                                                 
                                                                        
NEW AWARDS
($ in millions)
                                                                        
THREE MONTHS ENDED MARCH 31     2013               2012^(1)             % Chg
                                                                        
Oil & Gas                       $ 3,064    47  %   $ 3,920      47  %   (22 )%
Industrial & Infrastructure       2,244    34  %     3,992      47  %   (44 )%
Government                        756      12  %     389        5   %   94  %
Power                            448     7   %    93       1   %   382 %
Total new awards                $ 6,512   100 %   $ 8,394    100 %   (22 )%
                                                                        
                                                                        
                                                                        
BACKLOG TRENDS
($ in millions)
                                                                        
AS OF MARCH 31                  2013               2012^(1)             % Chg
                                                                        
Oil & Gas                       $ 18,561   49  %   $ 16,751     39  %   11  %
Industrial & Infrastructure       15,991   43  %     23,252     55  %   (31 )%
Government                        964      3   %     695        2   %   39  %
Power                            1,944   5   %    1,755    4   %   11  %
Total backlog                   $ 37,460  100 %   $ 42,453   100 %   (12 )%
                                                                        
United States                   $ 12,121   32  %   $ 8,774      21  %   38  %
The Americas (excluding the       11,373   30  %     12,284     29  %   (7  )%
United States)
Europe, Africa and the Middle     9,555    26  %     9,997      23  %   (4  )%
East
Asia Pacific (including          4,411   12  %    11,398   27  %   (61 )%
Australia)
Total backlog                   $ 37,460  100 %   $ 42,453   100 %   (12 )%
                                                                        
                                                                        

(1) The company’s operations and maintenance activities, previously included
in the Global Services segment, have been integrated into the Industrial &
Infrastructure segment. New awards and backlog for 2012 have been recast
accordingly.

Contact:

Fluor Corporation
Media Relations
Keith Stephens, 469-398-7624
or
Brian Mershon, 469-398-7621
or
Investor Relations
Ken Lockwood, 469-398-7220
or
Jason Landkamer, 469-398-7222
 
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