Fluor Corporation (NYSE:FLR) and IBM Corporation (NYSE:IBM) Wednesday
announced plans to create a global business-to-business e-market that
will offer services and capital goods required to build, operate and
maintain industrial and commercial operations.
Initially, the e-market is intended to serve capital goods buyers and
sellers in the manufacturing, telecommunications, pharmaceutical,
petroleum, consumer products and chemicals industries.
"Through the formation of this new venture with IBM, we can capitalize
on our own considerable purchasing power and expertise to drive great
efficiencies in purchasing a broad array of goods and services without
being limited to one industry or one category," said Fluor's Philip J.
Carroll, chairman and chief executive officer. "Our new venture will
provide a one-stop shop for many of our customers."
"This venture with Fluor represents an important step in delivering on
the promise of e-markets," said Mark Elliott, general manager, IBM
Global Services - Americas. "By combining our collective expertise in
procurement and capital goods supply chain management, we believe this
e-market has the potential to offer significant savings to e-market
participants."
Fluor, which has been known primarily as a global engineering,
procurement and construction company, in recent years has reorganized
and expanded its business into such areas as telecommunications,
operations and maintenance, temporary staffing, equipment rental, as
well as its traditional heavy construction capabilities.
IBM is a world leader in e-procurement. In 1999, the company procured
$13 billion in goods and services on the web. The effort to web-enable
the company's procurement systems, which began in 1994, has to date
resulted in savings of $6.5 billion. In 1999, IBM was awarded the Medal
of Professional Excellence by Purchasing Magazine.
With 1999 revenues of $12.4 billion, Fluor Corporation provides services
on a global basis in the fields of engineering, procurement,
construction, maintenance and operations, consulting and coal
production. The company has more than 50,000 employees, maintains some
50 offices around the world, and is actively working on projects in 70
countries. Further information about Fluor can be found at www.fluor.com.
With 1999 revenue of more than $87 billion, IBM is the world's largest
information technology provider (hardware, software and services). The
company has more than 300,000 employees and does business in more than
160 countries. Further information about IBM can be found at www.ibm.com.
NOTE ON FORWARD LOOKING STATEMENTS:
The foregoing release contains forward-looking statements regarding the
formation and implementation of a new business venture, the economic
efficiencies expected to be realized by such venture and participation
in such venture. Such forward-looking statements reflect current
analysis of existing information.
Caution must be exercised in relying on forward-looking statements. Due
to known and unknown risks, actual results may differ materially from
expectations. Factors potentially contributing to such differences
include, among others:
-- Changes in global business, economic, technological conditions;
-- Failure to achieve required levels of participation in the
venture;
-- Difficulties incurred in systems implementation or operations;
and
-- Competition.
The forward-looking statements are also based on various operating
assumptions regarding, among other things, the availability of
management resources and customer support for the venture and its
participants.
Additional information concerning factors that may influence the Fluor
Corporation's results can be found in its press releases as well as its
periodic filings with the Securities and Exchange Commission. In this
regard, risk factors are specifically discussed under the heading "Item
I. Business - Other Matters - Company Business Risks" in the Company's
Annual Report on Form 10-K for its 1999 fiscal year. Such filings are
available publicly and upon request from Fluor's Investor Relations
Department: 949/349-2000.
Fluor CorporationKeith Karpe, 949/349-7661orFluor CorporationLori Serrato, 949/349-7420orIBMNancy Kaplan, 914/766-4265