Fluor Corporation (NYSE: FLR) today announced that Tengizchevroil (TCO),
an oil producing partnership in Kazakhstan, has notified Fluor that TCO
has suspended its Second Generation and Sour Gas Injection (SGP/SGI)
expansion projects.
Fluor Chairman and CEO Alan Boeckmann said, "We were informed that TCO
partners have not yet agreed on how to fund those projects while meeting
the diverse needs of TCO partners. As a consequence," said Boeckmann,
"those expansion projects have been suspended until a funding plan can
be worked out." Efforts going forward, according to the TCO
notification, will be to bring the potential projects to a safe,
value-preserving and efficient suspension.
Assuming TCO partners do not reach agreement on funding by year end,
Fluor's potential new awards for the year and backlog at year end will
be approximately $1 billion less than originally anticipated. Regarding
Fluor's earnings outlook, the company reconfirmed its guidance of $2.10
per share for this year. Due to the uncertainty this development
presents, Fluor has widened its range for 2003 earnings guidance to
$2.10 to $2.35 per share.
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,
Calif., Fluor is a Fortune 500 company with revenues of $9 billion in
fiscal year 2001. For more information, visit www.fluor.com.
Note: This release contains forward-looking statements, including
statements relating to the expected performance of the Company's
business, projected financial results and projected backlog. The
forward-looking statements are based on current management expectations,
and actual results may differ materially as a result of several factors,
including, among other things, the inability to successfully obtain new
projects, the failure to achieve estimated earnings levels, difficulties
or delays incurred in the execution of contracts and changes in global
business, economic, political and social conditions. 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, on the Company's website at www.fluor.com
or upon request from Fluor'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: media, Jerry Holloway,
+1-949-349-7411, or Lori Serrato, +1-949-349-7420, or investors, Lila
Churney, +1-949-349-3909, or fax, +1-949-349-5375, all of Fluor
Corporation
media, Jerry Holloway, +1-949-349-7411, or Lori Serrato, +1-949-349-7420, or investors, Lila Churney, +1-949-349-3909, or fax, +1-949-349-5375, all of Fluor Corporation/