Fluor Corporation (NYSE: FLR) announced today that it has received the
interim award notification of the arbitration panel in Phase I of the
arbitration between Anaconda Operations Pty Ltd. and Fluor Australia Pty
Ltd. on the Murrin Murrin nickel cobalt project.
Anaconda was awarded an amount of only A$5 million (US$2.7 million) for
its Trade Practices Act claim. This portion of the claim had originally
represented more than A$1 billion (US$547.5 million) of Anaconda's A$1.6
billion (US$876.0 million) claim. An additional A$142 million (US$77.7
million) was awarded to Anaconda in damages. The panel has also awarded
Fluor Australia A$107 million (US$58.5 million) for its claims against
Anaconda. Although time has not allowed for a comprehensive review of
the ruling, Fluor will evaluate whether any appeal may be appropriate.
Alan Boeckmann, chairman and chief executive officer of Fluor
Corporation, said, "The company has provided reserves and has insurance
coverage for the award. In addition to disposing of Anaconda's Trade
Practices Act claim, this phase of the arbitration represents in excess
of 80 percent of the value of the claims asserted by Anaconda, and we
don't anticipate having to take any additional reserves for the second
phase of the arbitration."
Fluor stated that this ruling will not impact its financial outlook for
the current quarter or full year. Phase II of the arbitration, scheduled
for hearing in late 2003, will involve a determination on the remaining
claims.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the
fields of engineering, procurement, construction, operations,
maintenance and project management. Headquartered in Aliso Viejo,
California, Fluor is a Fortune 500 company with revenues of $9 billion
in fiscal 2001. For more information, visit www.fluor.com.
Note: The foregoing release contains forward-looking statements
regarding, among other things, projected earnings and reserve levels,
and expectations regarding the final outcome of matters in arbitration.
These forward-looking statements are based on management's current
outlook, and actual results may differ materially as a result of several
factors, including, among other things, unsuccessful outcomes in future
arbitrations or appeals with regard to the Murrin Murrin project.
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 periodic filings with the Securities and
Exchange Commission, including the discussion under the heading "Item 1.
Business-Other Matters-Company Business Risks" in the Company's Form
10-K filed March 21, 2002. These filings are available either publicly
or upon request from the Company's Investor Relations Department: (949)
349-3909. The Company disclaims any intent or obligation to update its
forward-looking statements.
For further information please contact: Jerry Holloway, Media Relations,
+1-949-349-7411, or Lori Serrato, Media Relations, +1-949-349-7420, or
Lila Churney, Investor Relations, +1-949-349-3909, fax +1-949-349-5375,
all of Fluor Corporation
Jerry Holloway, Media Relations, +1-949-349-7411, or Lori Serrato, Media Relations, +1-949-349-7420, or Lila Churney, Investor Relations, +1-949-349-3909, fax +1-949-349-5375, all of Fluor Corporation/