DOW JONES NEWSWIRES
Fluor Corp.'s (FLR) fourth-quarter net income fell 27% from a
year earlier, when the company recorded a large gain related to the
settlement of a tax audit.
However, the company maintained its 2009 earnings-per-share
guidance, citing its "sizable backlog, relatively robust prospect
list and actions to improve overhead leverage."
The company, which builds and maintains energy facilities, also
continued to see growth in its oil-and-gas segment, its largest
division.
Analysts have said Fluor could be one of the beneficiaries of
the federal government plans for infrastructure spending, but the
company, like others in the engineering and construction sector, is
vulnerable to prolonged weakness in oil prices and increasing raw
material costs.
Also, the economic downturn could leave clients struggling to
get financing to start or continue large construction projects,
analysts have warned.
For the fourth quarter, Fluor reported net income of $190.1
million, or $1.04 a share, down from $259.5 million, or $1.41 a
share, a year earlier.
The results included a $12 million reduction in taxes resulting
from a loss on the sale of offices in the U.K., while the
year-earlier results included a 68-cent-a-share gain related to the
settlement of an Internal Revenue Service income tax audit.
Revenue rose 29% to $6.07 billion.
Analysts polled by Thomson Reuters expected earnings of 92 cents
a share and revenue of $5.81 billion.
Operating profit rose 30% to $323 million.
New project awards fell 34% to $4.2 billion. Backlog was $33.2
billion, down sequentially from $36.5 billion at the end of the
third quarter.
The oil-and-gas segment posted a 60% increase in profit.
Meanwhile, profits at the industrial-and-infrastructure division
dropped 3.2%, while the government segment's profits nearly
tripled.
Fluor again backed its November outlook for 2009 earnings of
$3.90 to $4.20 a share.
Fluor is one of the world's largest engineering, procurement,
construction and maintenance services organizations. It serves a
range of industries worldwide, including oil and gas, chemical and
transportation.
Shares of Fluor closed Wednesday at $32.95 and were up 0.3%
after hours. The stock has lost about 60% of its value in the past
six months.
-By Jennifer Hoyt, Dow Jones Newswires; 201-938-2474;
jennifer.hoyt@dowjones.com