Fluor Corporation (NYSE: FLR) announced today that its dispute with the
developer of a resort hotel in the Caribbean has been resolved on a
no-liability basis.
On June 23, 2005, the company received an unexpected, unfavorable jury
verdict awarding damages to the developer. As a consequence, in its
second quarter the company recorded a $65 million charge consisting of
the jury award, estimated attorney fees and pre-judgment interest, and
accounts receivable. At the time of the original decision, company
officials stated that they strongly believed the verdict was not
supported by the facts or by applicable law. On September 15, 2005, the
judge who tried the case granted Fluor's motion for a new trial, setting
aside the unfavorable verdict in its totality.
On September 29, 2005, in lieu of a new trial, the parties have
stipulated to a judgment of no liability in favor of either side, and
the action has been dismissed with prejudice.
As a result of this final and non-appealable judgment, the company will
reverse in its third quarter approximately $34 million of the previously
recognized provision that relates to the unfavorable jury award,
estimated attorney fees and interest. The impact of this reversal was
not included in Fluor's most recent earnings guidance issued in its
second quarter earnings release.
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 $9.4 billion
in 2004. For more information, visit www.fluor.com.
Contact:
Leann Vandergrift/Lisa Boyette
Media Relations
949.349.7420/3652
tel
Ken Lockwood
Investor Relations
949.349.3815 tel
949.349.5375
fax
Media Relations, Leann Vandergrift, +1-949-349-7420, or LisaBoyette, +1-949-349-3652; or Investor Relations, Ken Lockwood,+1-949-349-3815, or fax, +1-949-349-5375, all of Fluor Corporation//Web site: http://www.fluor.com /