Fluor today announced that the company received an adverse decision from
an arbitration panel regarding its claims for additional compensation
related to the Greater Gabbard Offshore Wind Farm Project.
Through its claims, the company sought to recover compensation for
schedule and cost impacts arising from delays, disruption and
productivity issues which the company believes were attributable to the
client and other third parties.
As a result of the decision, Fluor expects to record a pre-tax charge of
approximately $400 million in the fourth quarter, which was not
considered in its most recent earnings guidance for 2012. With the
project substantially complete, the decision is not expected to have a
material adverse impact on cash flow.
“Fluor delivered a quality project, and we are extremely disappointed
with this unexpected decision, especially considering recent statements
that acknowledge that all 140 turbines are commissioned and exporting
electricity, and the overall performance is more than 10 percent ahead
of the client’s expectations,” said Chairman and Chief Executive Officer
David Seaton.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the
world's most challenging and complex projects. Founded in 1912, the
company was started by John Simon Fluor Sr. with a modest investment of
$100. Since those humble beginnings, the company has grown into one of
the largest engineering & construction companies in the world. Fluor is
celebrating its 100th anniversary during 2012.
Today, through its global network of offices on six continents, the
company provides comprehensive capabilities and world-class expertise in
engineering, procurement, construction, commissioning, operations,
maintenance and project management. Headquartered in Irving, Texas,
Fluor is a FORTUNE 200 company and had revenue of $23.4 billion in 2011.
For more information, visit www.fluor100.com
and www.fluor.com.
Forward-Looking Statements: This
Press Release contains forward looking statements regarding the expected
accounting and financial effects of the arbitrators’ decision on the
Company’s claims relating to the Greater Gabbard Project. Actual
results may vary based on numerous factors including final determination
of costs and recoveries relating to the project, foreign currency
adjustments and tax and accounting treatment of these items.
Fluor CorporationMedia RelationsKeith Stephens, 469-398-7624orBrian Mershon, 469-398-7621Investor RelationsKen Lockwood, 469-398-7220orJason Landkamer, 469-398-7222