- EARNINGS PER SHARE OF $1.02, UP FROM $0.91 PER SHARE A YEAR AGO
- SEGMENT PROFIT UP 16 PERCENT, INCLUDING A 42 PERCENT RISE IN OIL & GAS
- NEW AWARDS OF $6.5 BILLION; ENDING BACKLOG OF $37.5 BILLION
Fluor Corporation (NYSE: FLR) today announced financial results for its
first quarter ended March 31, 2013. Net earnings attributable to Fluor
for the first quarter were $166 million, or $1.02 per diluted share, up
from $155 million, or $0.91 per diluted share in the first quarter of
2012 which included the benefit of a low tax rate. Consolidated segment
profit for the quarter was $294 million, and revenue was $7.2 billion,
up 16 percent and 14 percent, respectively, from the first quarter of
2012. Current quarter results were driven by growth in the Oil & Gas and
Industrial & Infrastructure segments.
New awards for the first quarter were substantial at $6.5 billion,
including $3.1 billion in Oil & Gas and $2.2 billion in Industrial &
Infrastructure. Consolidated backlog at the end of the quarter was $37.5
billion, down 12 percent from a year ago mainly due to a downturn in the
mining and metals market.
“We are pleased with our financial results for the quarter, including
$6.5 billion of new awards,” said Chairman and Chief Executive Officer
David Seaton. “We are particularly encouraged by the strength of our Oil
& Gas business.”
Corporate G&A expense for the first quarter of 2013 was $33 million,
which compares favorably with $38 million in the first quarter of 2012.
Fluor’s financial condition remains strong, with cash plus current and
noncurrent marketable securities totaling $2.5 billion at the end of the
first quarter.
Outlook
The Company is maintaining its EPS guidance for 2013 at the previously
announced range of $3.85 to $4.35 per diluted share. This is based on
our positive expectations for Oil & Gas and Industrial & Infrastructure
overall, which have the potential to offset uncertainty and delays in
mining and metals.
Business Segments
Fluor’s Oil & Gas business reported segment profit of $105 million,
generating a 42 percent increase from the first quarter of 2012. Revenue
grew 36 percent to $2.8 billion, compared with $2.0 billion last year.
First quarter results reflect growing contributions from upstream and
petrochemical projects. New awards for the segment totaled $3.1 billion
in the quarter, including petrochemical projects in the United States
and China. Backlog at the end of the first quarter rose to
$18.6 billion, up 11 percent from $16.8 billion a year ago.
The Industrial & Infrastructure group reported segment profit of $127
million, up 12 percent from $113 million in the first quarter of 2012.
Revenue for the segment was $3.1 billion, compared with $3.0 billion a
year ago. Segment profit improvements were driven mainly by increased
contributions from the infrastructure business line. Segment new awards
of $2.2 billion in the first quarter were driven by large infrastructure
programs, including the Tappan Zee Bridge in New York and the Horseshoe
road project in Texas. Backlog at the end of the quarter was $16.0
billion, down from $23.3 billion a year ago, mainly due to reduced
mining and metals awards over the past year. As a result of an
organizational realignment, effective this quarter, financial results
for the Industrial & Infrastructure segment now include the operations
and maintenance business line, which was previously reported as part of
the Global Services segment.
Government posted segment profit of $41 million, compared with $35
million in the first quarter of 2012, including higher LOGCAP IV award
fees and the close out of prior year indirect rates. Revenue for the
quarter declined 12 percent to $751 million, compared with $850 million
a year ago. Revenue for the quarter was impacted by lower LOGCAP IV task
order volume and lower activity levels at the Savannah River site for
the Department of Energy. New awards totaled $756 million in the first
quarter, driven primarily by the timing of the release of LOGCAP IV task
orders in Afghanistan. Backlog at the end of the quarter was $964
million, compared with $695 million a year ago.
Segment profit for Global Services was $28 million in the first quarter
compared to $33 million a year ago, and revenue for the quarter
decreased 18 percent to $150 million. Results for the quarter were lower
than last year due to reduced contributions from the equipment business
line. As noted above, results for Global Services no longer include the
operations and maintenance business line, which is now reported as part
of the Industrial & Infrastructure segment. As a result of this change,
there are no new awards or backlog for the Global Services segment.
Fluor’s Power group reported a first quarter segment loss of $6.8
million, which includes $15 million for the research and development
expenses associated with the Company’s majority ownership in NuScale.
This compares with a segment loss of $2 million, including $10 million
of NuScale expenses, a year ago. Revenue for the quarter increased
substantially to $383 million, compared with $175 million a year ago due
to progress on gas-fired and solar projects. New awards for the quarter
were $448 million, including an extension of a long-term fossil power
maintenance contract in Texas and the award of an engineering,
procurement and construction contract for a solar facility in
California. Segment backlog was $1.9 billion, up from $1.8 billion in
the first quarter of 2012.
First Quarter Conference Call
Fluor will host a conference call at 5:30 p.m. Eastern time on Thursday,
May 2, which will be webcast live on the Internet and can be accessed by
logging onto http://investor.fluor.com.
A supplemental slide presentation will be available shortly before the
call begins. The webcast and presentation will be archived for 30 days
following the call. Certain non-GAAP financial measures, as defined
under SEC rules, are included in this press release and may be discussed
during the conference call. A reconciliation of these measures is
included in this press release which will be posted in the investor
relations section of the Company’s website. In addition, recast
historical financial results for the last three years for the Industrial
& Infrastructure and Global Services segments, that reflect the
realignment of the operations and maintenance business line, can be
found in the Fact Book posted to the investor relations section of the
Company’s website.
About Fluor Corporation
For more than 100 years, Fluor Corporation (NYSE: FLR) has partnered
with its clients to design, build and maintain many of the world's most
challenging and complex capital projects. Through its global network of
offices on six continents, more than 40,000 employees provide
comprehensive capabilities and world-class expertise in the fields of
engineering, procurement, construction, commissioning, fabrication,
operations, maintenance and project management. Today, the company
serves a global client base in the energy, chemicals, government,
industrial, infrastructure, operations & maintenance, manufacturing &
life sciences, mining, power and transportation sectors. Headquartered
in Irving, Texas, Fluor ranks 124 on the FORTUNE 500 list and had
revenue of $27.6 billion in 2012. For more information visit www.fluor.com.
Forward-Looking Statements: This
release may contain forward-looking statements (including without
limitation statements to the effect that the Company or its management
"believes," "expects," "anticipates," "plans" or other similar
expressions). These forward-looking statements, including
statements relating to future backlog, revenue and earnings, expected
performance of the Company's business and the outlook of the markets
which the Company serves are based on current management expectations
and involve risks and uncertainties. Actual results may differ
materially as a result of a number of factors, including, among other
things, failure to achieve projected backlog, revenue and/or earnings
levels; difficulties or delays incurred in the execution of contracts,
resulting in cost overruns or liabilities, including those caused by the
performance of the Company’s clients, subcontractors, suppliers and
joint venture or teaming partners; intense competition in the global
engineering, procurement and construction industry, which can place
downward pressure on the Company’s contract prices and profit margins;
the Company's failure to receive anticipated new contract awards and the
related impacts on revenues, earnings, staffing levels and costs;
failure to obtain favorable results in existing or future litigation or
dispute resolution proceedings; the cyclical nature of many of the
markets the Company serves, including the Company’s commodity-based
business lines, and the Company’s vulnerability to downturns; current
economic conditions affecting our clients, partners, subcontractors and
suppliers; decreased capital investment or expenditures, or a failure to
make anticipated increased capital investment or expenditures, by the
Company’s clients; delays or defaults in client payments; foreign
economic and political uncertainties that could lead to project
disruptions, increased costs and potential losses; international
security risks; failure to meet timely completion or performance
standards that could result in higher costs, reduced profits or, in some
cases, losses on projects; risks or uncertainties associated with events
outside of our control, such as the effects of severe weather, which may
result in project delays, increased costs, liabilities or losses on
projects; client cancellations of, or scope adjustments to, existing
contracts, including the Company’s government contracts that may be
terminated at any time, and the related impacts on staffing levels and
cost; the potential impact of certain tax matters including, but not
limited to, those from foreign operations and ongoing audits by tax
authorities; ; possible information technology interruptions or
inability to protect intellectual property; liabilities arising for
faulty engineering services; the impact of anti-bribery and
international trade laws and regulations; the availability of credit and
restrictions imposed by credit facilities, both for the Company and our
clients, suppliers, subcontractors or other partners; foreign exchange
risks; failure to maintain safe worksites; the impact of environmental,
health and safety regulations or other laws; possible limitations on
bonding or letter of credit capacity; and risks or uncertainties
associated with acquisitions, dispositions and investments. 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 the Company's public periodic filings
with the Securities and Exchange Commission, including the discussion
under the heading "Item 1A. Risk Factors" in the Company's Form 10-K
filed on February 20, 2013. Such filings are available either publicly
or upon request from Fluor's Investor Relations Department: (469)
398-7220. The Company disclaims any intent or obligation other than as
required by law to update its forward-looking statements in light of new
information or future events.
|
|
|
FLUOR CORPORATION
|
|
CONSOLIDATED FINANCIAL RESULTS
|
|
(in millions, except per share amounts)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
CONSOLIDATED OPERATING RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
|
2013
|
|
|
|
2012
|
|
|
Revenue
|
|
$
|
7,185.6
|
|
|
$
|
6,290.1
|
|
|
Cost and expenses:
|
|
|
|
|
|
|
Cost of revenue
|
|
|
6,843.8
|
|
|
|
6,014.2
|
|
|
Corporate general and administrative expense
|
|
|
32.6
|
|
|
|
37.8
|
|
|
Interest expense (income), net
|
|
|
2.9
|
|
|
|
(2.7
|
)
|
|
Total cost and expenses
|
|
|
6,879.3
|
|
|
|
6,049.3
|
|
|
Earnings before income taxes
|
|
|
306.3
|
|
|
|
240.8
|
|
|
Income tax expense
|
|
|
93.0
|
|
|
|
63.6
|
|
|
Net earnings
|
|
|
213.3
|
|
|
|
177.2
|
|
|
Less: Net earnings attributable to noncontrolling interests
|
|
|
46.8
|
|
|
|
22.3
|
|
|
Net earnings attributable to Fluor Corporation
|
|
$
|
166.5
|
|
|
$
|
154.9
|
|
|
Basic earnings per share
|
|
|
|
|
|
|
Net earnings
|
|
$
|
1.02
|
|
|
$
|
0.92
|
|
|
Weighted average shares
|
|
|
162.4
|
|
|
|
168.9
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
Net earnings
|
|
$
|
1.02
|
|
|
$
|
0.91
|
|
|
Weighted average shares
|
|
|
164.0
|
|
|
|
170.4
|
|
|
New awards
|
|
$
|
6,511.7
|
|
|
$
|
8,394.2
|
|
|
Backlog
|
|
$
|
37,459.7
|
|
|
$
|
42,453.4
|
|
|
Work performed
|
|
$
|
7,035.7
|
|
|
$
|
6,107.5
|
|
|
|
|
FLUOR CORPORATION
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT FINANCIAL REVIEW
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
|
2013
|
|
|
|
|
|
2012(1)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Oil & Gas
|
|
$
|
2,769.3
|
|
|
|
|
$
|
2,040.8
|
|
|
|
|
Industrial & Infrastructure
|
|
|
3,132.2
|
|
|
|
|
|
3,041.7
|
|
|
|
|
Government
|
|
|
751.2
|
|
|
|
|
|
850.1
|
|
|
|
|
Global Services
|
|
|
149.9
|
|
|
|
|
|
182.6
|
|
|
|
|
Power
|
|
|
383.0
|
|
|
|
|
|
174.9
|
|
|
|
|
Total revenue
|
|
$
|
7,185.6
|
|
|
|
|
$
|
6,290.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit (loss) $ and margin %
|
|
|
|
|
|
|
|
|
|
Oil & Gas
|
|
$
|
104.5
|
|
|
3.8
|
%
|
|
$
|
73.4
|
|
|
3.6
|
%
|
|
Industrial & Infrastructure
|
|
|
126.9
|
|
|
4.1
|
%
|
|
|
113.5
|
|
|
3.7
|
%
|
|
Government
|
|
|
41.3
|
|
|
5.5
|
%
|
|
|
35.3
|
|
|
4.2
|
%
|
|
Global Services
|
|
|
27.7
|
|
|
18.5
|
%
|
|
|
33.0
|
|
|
18.1
|
%
|
|
Power
|
|
|
(6.8
|
)
|
|
(1.8
|
)%
|
|
|
(1.9
|
)
|
|
(1.1
|
)%
|
|
Total segment profit $ and margin %
|
|
$
|
293.6
|
|
|
4.1
|
%
|
|
$
|
253.3
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and administrative expense
|
|
|
(32.6
|
)
|
|
|
|
|
(37.8
|
)
|
|
|
|
Interest (expense) income, net
|
|
|
(2.9
|
)
|
|
|
|
|
2.7
|
|
|
|
|
Earnings attributable to noncontrolling interests
|
|
|
48.2
|
|
|
|
|
|
22.6
|
|
|
|
|
Earnings before taxes
|
|
$
|
306.3
|
|
|
|
|
$
|
240.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The company’s operations and maintenance activities, previously
included in the Global Services segment, have been integrated into the
Industrial & Infrastructure segment. Revenue and segment profit for 2012
have been recast accordingly.
|
|
|
|
|
|
|
FLUOR CORPORATION
|
|
Unaudited
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET ITEMS
|
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
|
|
|
|
|
MARCH 31,
|
|
DECEMBER 31,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Cash and marketable securities, including noncurrent
|
|
$
|
2,494.4
|
|
|
$
|
2,610.0
|
|
|
Total current assets
|
|
|
6,260.8
|
|
|
|
6,094.1
|
|
|
Total assets
|
|
|
8,463.0
|
|
|
|
8,276.0
|
|
|
Total short-term debt
|
|
|
18.5
|
|
|
|
20.8
|
|
|
Total current liabilities
|
|
|
3,920.7
|
|
|
|
3,887.1
|
|
|
Long-term debt
|
|
|
496.3
|
|
|
|
520.2
|
|
|
Shareholders' equity
|
|
|
3,485.0
|
|
|
|
3,341.3
|
|
|
|
|
|
|
|
|
Total debt to capitalization % (based on shareholders' equity)
|
|
|
12.9
|
%
|
|
|
13.9
|
%
|
|
Shareholders' equity per share
|
|
$
|
21.40
|
|
|
$
|
20.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED CASH FLOW ITEMS
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
Cash utilized by operating activities
|
|
$
|
(21.7
|
)
|
|
$
|
(47.1
|
)
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Net (purchases) sales and maturities of marketable securities
|
|
|
(25.1
|
)
|
|
|
(133.2
|
)
|
|
Capital expenditures
|
|
|
(56.9
|
)
|
|
|
(54.3
|
)
|
|
Proceeds from disposal of property, plant and equipment
|
|
|
15.7
|
|
|
|
37.2
|
|
|
Investments in partnerships and joint ventures
|
|
|
(7.4
|
)
|
|
|
(0.4
|
)
|
|
Consolidation of a variable interest entity
|
|
|
24.7
|
|
|
|
-
|
|
|
Acquisitions
|
|
|
(7.7
|
)
|
|
|
-
|
|
|
Other items
|
|
|
4.4
|
|
|
|
(1.5
|
)
|
|
Cash utilized by investing activities
|
|
|
(52.3
|
)
|
|
|
(152.2
|
)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Repurchase of common stock
|
|
|
-
|
|
|
|
(27.5
|
)
|
|
Dividends paid
|
|
|
-
|
|
|
|
(21.4
|
)
|
|
Repayment of 5.625% Municipal Bonds
|
|
|
(17.8
|
)
|
|
|
-
|
|
|
Repayment of convertible debt and notes payable
|
|
|
(8.6
|
)
|
|
|
(0.3
|
)
|
|
Distributions paid to noncontrolling interests, net of capital
contributions
|
|
|
(17.7
|
)
|
|
|
(18.4
|
)
|
|
Other Items
|
|
|
1.0
|
|
|
|
3.4
|
|
|
Cash utilized by financing activities
|
|
|
(43.1
|
)
|
|
|
(64.2
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(22.6
|
)
|
|
|
24.4
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
$
|
(139.7
|
)
|
|
$
|
(239.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
$
|
54.6
|
|
|
$
|
51.8
|
|
|
|
|
FLUOR CORPORATION
|
|
Supplemental Fact Sheet
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW AWARDS
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
2013
|
|
2012(1)
|
|
% Chg
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas
|
|
$
|
3,064
|
|
47
|
%
|
|
$
|
3,920
|
|
|
47
|
%
|
|
(22
|
)%
|
|
Industrial & Infrastructure
|
|
|
2,244
|
|
34
|
%
|
|
|
3,992
|
|
|
47
|
%
|
|
(44
|
)%
|
|
Government
|
|
|
756
|
|
12
|
%
|
|
|
389
|
|
|
5
|
%
|
|
94
|
%
|
|
Power
|
|
|
448
|
|
7
|
%
|
|
|
93
|
|
|
1
|
%
|
|
382
|
%
|
|
Total new awards
|
|
$
|
6,512
|
|
100
|
%
|
|
$
|
8,394
|
|
|
100
|
%
|
|
(22
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BACKLOG TRENDS
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS OF MARCH 31
|
|
2013
|
|
2012(1)
|
|
% Chg
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas
|
|
$
|
18,561
|
|
49
|
%
|
|
$
|
16,751
|
|
|
39
|
%
|
|
11
|
%
|
|
Industrial & Infrastructure
|
|
|
15,991
|
|
43
|
%
|
|
|
23,252
|
|
|
55
|
%
|
|
(31
|
)%
|
|
Government
|
|
|
964
|
|
3
|
%
|
|
|
695
|
|
|
2
|
%
|
|
39
|
%
|
|
Power
|
|
|
1,944
|
|
5
|
%
|
|
|
1,755
|
|
|
4
|
%
|
|
11
|
%
|
|
Total backlog
|
|
$
|
37,460
|
|
100
|
%
|
|
$
|
42,453
|
|
|
100
|
%
|
|
(12
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
12,121
|
|
32
|
%
|
|
$
|
8,774
|
|
|
21
|
%
|
|
38
|
%
|
|
The Americas (excluding the United States)
|
|
|
11,373
|
|
30
|
%
|
|
|
12,284
|
|
|
29
|
%
|
|
(7
|
)%
|
|
Europe, Africa and the Middle East
|
|
|
9,555
|
|
26
|
%
|
|
|
9,997
|
|
|
23
|
%
|
|
(4
|
)%
|
|
Asia Pacific (including Australia)
|
|
|
4,411
|
|
12
|
%
|
|
|
11,398
|
|
|
27
|
%
|
|
(61
|
)%
|
|
Total backlog
|
|
$
|
37,460
|
|
100
|
%
|
|
$
|
42,453
|
|
|
100
|
%
|
|
(12
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The company’s operations and maintenance activities, previously
included in the Global Services segment, have been integrated into the
Industrial & Infrastructure segment. New awards and backlog for 2012
have been recast accordingly.
Fluor CorporationMedia RelationsKeith Stephens, 469-398-7624orBrian Mershon, 469-398-7621orInvestor RelationsKen Lockwood, 469-398-7220orJason Landkamer, 469-398-7222