- First Quarter EPS of $0.74
- New Awards of $4.7 Billion; Backlog of $46 Billion
Fluor
Corporation (NYSE: FLR) today announced financial results for its
first quarter ended March 31, 2016. Net earnings attributable to Fluor
for the first quarter were $104 million, or $0.74 per diluted share,
compared to $144 million, or $0.96 per diluted share a year ago. Results
for the quarter include $22 million in pre-tax expenses associated with
the recent acquisition of Stork and other matters. Excluding these
expenses the company reported net earnings of $120 million, or $0.85 per
diluted share. Consolidated segment profit for the quarter was $241
million, compared to $276 million a year ago. Segment profit results
reflect reduced mining activities compared to a year ago. First quarter
revenue of $4.4 billion compares to $4.5 billion in the prior year.
New awards for the quarter were $4.7 billion, including $2.3 billion in
Government, $1.4 billion in Industrial, Infrastructure & Power, $579
million in Energy, Chemicals & Mining and $404 million in Maintenance,
Modification & Asset Integrity. Consolidated ending backlog of $46
billion includes Stork’s backlog of $1.5 billion. Consolidated backlog
at the end of the first quarter last year was $41.2 billion.
"Our new awards in the first quarter reflect the diversity of our
business across multiple industries," said Fluor Chairman and Chief
Executive Officer David Seaton. "Although some prospective projects have
been deferred, and active projects slowed, this diversity shows we can
continue to fuel long-term growth in a challenging business environment.
I'm particularly encouraged by the strength we see in infrastructure and
government."
Corporate G&A expense for the first quarter of 2016 was $55 million,
compared with $41 million a year ago primarily due to transaction costs
related to the acquisition of Stork. Fluor’s cash and marketable
securities balance at the end of the first quarter was $2 billion.
During the quarter, the company generated $115 million in cash flow from
operating activities, and paid out $30 million in dividends.
Outlook
Although new awards and backlog position the company well for the long
term, clients in the Energy, Chemicals and Mining segment continue to
extend projects and delay final investment decisions. This has resulted
in a lower than anticipated trajectory for full year revenue. Taking
this into consideration, the company is reducing its 2016 guidance
range, originally issued in October, of $3.50 to $4.00 per diluted share
to $3.25 to $3.65 per diluted share.
Business Segments
Fluor’s Energy, Chemicals & Mining segment reported segment profit of
$182 million, compared to $218 million in the first quarter of 2015.
Revenue of $2.4 billion declined from $3.0 billion a year ago primarily
due to lower mining activities. New awards for the segment totaled $579
million, and ending backlog was $26.8 billion compared to $29.7 billion
a year ago.
The Industrial, Infrastructure & Power segment reported segment profit
of $12 million, compared to $10 million in the first quarter of 2015.
Revenue for the segment increased 52 percent to $833 million from $547
million a year ago. Results for the quarter reflect execution on two
nuclear power projects for Westinghouse, partially offset by reduced
activities in infrastructure. New awards in the first quarter were
$1.4 billion including the Loop 202 South Mountain Freeway Project in
Arizona. Ending backlog for the segment was $10.3 billion, up from $4.8
billion a year ago.
The Government segment reported segment profit of $17 million, compared
to $15 million a year ago. Revenue for the quarter was $686 million,
compared to $646 million a year ago. First quarter new awards of $2.3
billion include the Idaho Cleanup Project Core Contract and a multi-year
extension of our Portsmouth project in Piketon, Ohio. Ending backlog was
$5.2 billion, up from $4.2 billion a year ago.
The Maintenance, Modification & Asset Integrity segment reported a
segment profit of $30 million in the first quarter of 2016, compared to
$34 million a year ago. Revenue for the quarter was $461 million
compared to $373 million in the first quarter of 2015. Results for the
quarter reflect one month of contributions from the Stork business,
offset by declines in the equipment business line. New awards totaled
$404 million for the quarter, and ending backlog was $3.7 billion, up
from $2.5 billion a year ago.
First Quarter Conference Call
Fluor will host a conference call at 5:30 p.m. Eastern time on Thursday,
May 5, 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.
About Fluor Corporation
Fluor
Corporation (NYSE: FLR) is a global engineering, procurement,
fabrication, construction and maintenance company that designs, builds
and maintains capital-efficient facilities for its clients on six
continents. For more than a century, Fluor has served clients by
delivering innovative and integrated solutions for our clients across
the globe. With headquarters in Irving, Texas, Fluor ranks 136 on the FORTUNE
500 list with revenue of $18.1 billion in 2015 and has 59,000
employees worldwide. For more information, please visit www.fluor.com
or follow us on Twitter @FluorCorp.
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," is “positioned” or other similar expressions).
These forward-looking statements, including statements relating to
future growth, backlog, earnings and the outlook for the Company’s
business 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, the
cyclical nature of many of the markets the Company serves, including the
Company’s Energy, Chemicals & Mining commodity-based segment; the
Company's failure to receive anticipated new contract awards;
difficulties or delays incurred in the execution of contracts, including
those caused by the performance of the Company’s clients,
subcontractors, suppliers and joint venture or teaming partners; failure
of our joint venture or other partners to perform their obligations;
failure to obtain favorable results in existing or future litigation or
dispute resolution proceedings or claims; client delays or defaults in
making payments; intense competition in the industries in which we
operate; current economic conditions affecting our clients, partners,
subcontractors and suppliers; cyber-security breaches; failure to meet
timely completion or performance standards; liabilities arising from
faulty services; client cancellations of, or scope adjustments to,
existing contracts; risks or uncertainties associated with acquisitions,
dispositions and investments; risks arising from the inability to
successfully integrate acquired businesses; foreign economic and
political uncertainties; risks or uncertainties associated with events
outside of our control; the Company’s failure, or the failure of our
agents or partners, to comply with laws; the potential impact of certain
tax matters; possible information technology interruptions or inability
to protect intellectual property; liabilities associated with the
performance of nuclear services; foreign exchange risks; the inability
to hire and retain qualified personnel; failure to maintain safe
worksites and international security risks; the availability of credit
and restrictions imposed by credit facilities, both for the Company and
our clients, suppliers, subcontractors or other partners; possible
limitations on bonding or letter of credit capacity; and the Company’s
ability to secure appropriate insurance. 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 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 18, 2016.
Such filings are available either publicly or upon request from
Fluor's Investor Relations Department: (469) 398-7070. 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
|
|
|
2016
|
|
|
2015
|
|
Revenue
|
|
|
$
|
4,423.9
|
|
|
$
|
4,548.6
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
4,168.1
|
|
|
|
4,251.2
|
|
Corporate general and administrative expense
|
|
|
|
55.1
|
|
|
|
41.1
|
|
Interest expense, net
|
|
|
|
11.5
|
|
|
|
7.4
|
|
Total cost and expenses
|
|
|
|
4,234.7
|
|
|
|
4,299.7
|
|
Earnings before taxes
|
|
|
|
189.2
|
|
|
|
248.9
|
|
Income tax expense
|
|
|
|
70.2
|
|
|
|
83.3
|
|
Net earnings
|
|
|
|
119.0
|
|
|
|
165.6
|
|
Less: Net earnings attributable to noncontrolling interests
|
|
|
14.7
|
|
|
|
21.5
|
|
Net earnings attributable to Fluor Corporation
|
|
|
$
|
104.3
|
|
|
$
|
144.1
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
0.75
|
|
|
$
|
0.98
|
|
Weighted average shares
|
|
|
|
139.0
|
|
|
|
147.7
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
0.74
|
|
|
$
|
0.96
|
|
Weighted average shares
|
|
|
|
140.9
|
|
|
|
149.9
|
|
|
|
|
|
|
|
|
|
|
|
New awards
|
|
|
$
|
4,681.4
|
|
|
$
|
4,447.7
|
|
Backlog
|
|
|
$
|
45,989.5
|
|
|
$
|
41,194.8
|
|
Work performed
|
|
|
$
|
4,311.3
|
|
|
$
|
4,419.0
|
|
|
|
|
|
FLUOR CORPORATION
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT FINANCIAL REVIEW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
|
2016
|
|
|
|
|
|
|
2015 (1)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy, Chemicals & Mining
|
|
|
$
|
2,443.5
|
|
|
|
|
|
|
|
$
|
2,982.7
|
|
|
|
|
|
Industrial, Infrastructure & Power (2)
|
|
|
|
833.3
|
|
|
|
|
|
|
|
|
546.7
|
|
|
|
|
|
Government
|
|
|
|
686.0
|
|
|
|
|
|
|
|
|
646.0
|
|
|
|
|
|
Maintenance, Modification & Asset Integrity
|
|
|
|
461.1
|
|
|
|
|
|
|
|
|
373.2
|
|
|
|
|
|
Total revenue
|
|
|
$
|
4,423.9
|
|
|
|
|
|
|
|
$
|
4,548.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit $ and margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy, Chemicals & Mining
|
|
|
$
|
182.0
|
|
|
|
7.4
|
%
|
|
|
|
$
|
217.8
|
|
|
|
7.3
|
%
|
|
Industrial, Infrastructure & Power (2)
|
|
|
|
11.9
|
|
|
|
1.4
|
%
|
|
|
|
|
9.7
|
|
|
|
1.8
|
%
|
|
Government
|
|
|
|
17.1
|
|
|
|
2.5
|
%
|
|
|
|
|
14.8
|
|
|
|
2.3
|
%
|
|
Maintenance, Modification & Asset Integrity
|
|
|
|
30.1
|
|
|
|
6.5
|
%
|
|
|
|
|
33.6
|
|
|
|
9.0
|
%
|
|
Total segment profit $ and margin %
|
|
|
$
|
241.1
|
|
|
|
5.4
|
%
|
|
|
|
$
|
275.9
|
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate general and administrative expense
|
|
|
|
(55.1
|
)
|
|
|
|
|
|
|
|
(41.1
|
)
|
|
|
|
|
Interest expense, net
|
|
|
|
(11.5
|
)
|
|
|
|
|
|
|
|
(7.4
|
)
|
|
|
|
|
Earnings attributable to noncontrolling interests
|
|
|
|
14.7
|
|
|
|
|
|
|
|
|
21.5
|
|
|
|
|
|
Earnings from continuing operations before taxes
|
|
|
$
|
189.2
|
|
|
|
|
|
|
|
$
|
248.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) During the first quarter of 2016, the company changed the
composition of its reportable segments to better reflect the diverse end
markets that the company serves. Segment operating information for 2015
has been recast to reflect these changes.
(2) Includes research and development expenses associated with NuScale
totaling $26 million and $17 million for the three months ended March
31, 2016 and 2015, respectively.
|
|
|
|
|
FLUOR CORPORATION
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
SELECTED BALANCE SHEET ITEMS
|
|
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
MARCH 31,
|
|
|
DECEMBER 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Cash and marketable securities, including noncurrent
|
|
|
$
|
2,017.5
|
|
|
|
$
|
2,367.6
|
|
|
|
Total current assets
|
|
|
|
5,402.9
|
|
|
|
|
5,105.4
|
|
(1)
|
|
Total assets
|
|
|
|
9,001.7
|
|
|
|
|
7,625.4
|
|
(1)
|
|
Total short-term debt
|
|
|
|
118.9
|
|
|
|
|
-
|
|
|
|
Total current liabilities
|
|
|
|
3,589.9
|
|
|
|
|
2,935.4
|
|
|
|
Long-term debt
|
|
|
|
1,572.0
|
|
|
|
|
986.6
|
|
(1)
|
|
Shareholders' equity
|
|
|
|
3,088.6
|
|
|
|
|
2,997.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to capitalization % (based on shareholders' equity)
|
|
|
|
35.4
|
%
|
|
|
|
24.8
|
%
|
|
|
Shareholders' equity per share
|
|
|
$
|
22.18
|
|
|
|
$
|
21.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED CASH FLOW ITEMS
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities
|
|
|
$
|
114.7
|
|
|
|
$
|
39.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Net (purchases) sales and maturities of marketable securities
|
|
|
|
98.7
|
|
|
|
|
47.6
|
|
|
|
Capital expenditures
|
|
|
|
(48.6
|
)
|
|
|
|
(73.9
|
)
|
|
|
Proceeds from disposal of property, plant and equipment
|
|
|
|
25.9
|
|
|
|
|
29.9
|
|
|
|
Investments in partnerships and joint ventures
|
|
|
|
(402.4
|
)
|
|
|
|
(21.5
|
)
|
|
|
Acquisitions
|
|
|
|
(240.8
|
)
|
|
|
|
-
|
|
|
|
Other items
|
|
|
|
7.2
|
|
|
|
|
(0.2
|
)
|
|
|
Cash utilized by investing activities
|
|
|
|
(560.0
|
)
|
|
|
|
(18.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
Repurchase of common stock
|
|
|
|
(9.7
|
)
|
|
|
|
(111.7
|
)
|
|
|
Dividends paid
|
|
|
|
(29.9
|
)
|
|
|
|
(32.4
|
)
|
|
|
Proceeds from issuance of 1.75% Senior Notes
|
|
|
|
552.9
|
|
|
|
|
-
|
|
|
|
Debt issuance costs
|
|
|
|
(3.2
|
)
|
|
|
|
-
|
|
|
|
Repayment of Stork Notes and other borrowings
|
|
|
|
(326.3
|
)
|
|
|
|
-
|
|
|
|
Borrowings under revolving lines of credit
|
|
|
|
760.0
|
|
|
|
|
-
|
|
|
|
Repayment of borrowings under revolving lines of credit
|
|
|
|
(760.0
|
)
|
|
|
|
|
|
Distributions paid to noncontrolling interests, net of capital
contributions
|
|
|
|
(11.6
|
)
|
|
|
|
(2.8
|
)
|
|
|
Other Items
|
|
|
|
(1.4
|
)
|
|
|
|
(7.1
|
)
|
|
|
Cash provided (utilized) by financing activities
|
|
|
|
170.8
|
|
|
|
|
(154.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
22.1
|
|
|
|
|
(49.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
|
$
|
(252.4
|
)
|
|
|
$
|
(181.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
$
|
47.1
|
|
|
|
$
|
47.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain amounts in 2015 have been reclassified to conform to the
2016 presentation due to the implementation of new accounting
pronouncements.
|
|
|
|
|
FLUOR CORPORATION
|
|
Supplemental Fact Sheet
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEW AWARDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED MARCH 31
|
|
|
2016
|
|
|
|
2015 (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy, Chemicals & Mining
|
|
|
$
|
579
|
|
|
12
|
%
|
|
|
|
$
|
3,348
|
|
|
75
|
%
|
|
Industrial, Infrastructure & Power
|
|
|
|
1,433
|
|
|
31
|
%
|
|
|
|
|
530
|
|
|
12
|
%
|
|
Government
|
|
|
|
2,266
|
|
|
48
|
%
|
|
|
|
|
74
|
|
|
2
|
%
|
|
Maintenance, Modification & Asset Integrity
|
|
|
|
404
|
|
|
9
|
%
|
|
|
|
|
496
|
|
|
11
|
%
|
|
Total new awards
|
|
|
$
|
4,682
|
|
|
100
|
%
|
|
|
|
$
|
4,448
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BACKLOG TRENDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS OF MARCH 31
|
|
|
2016
|
|
|
|
2015 (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy, Chemicals & Mining
|
|
|
$
|
26,786
|
|
|
58
|
%
|
|
|
|
$
|
29,742
|
|
|
72
|
%
|
|
Industrial, Infrastructure & Power
|
|
|
|
10,319
|
|
|
23
|
%
|
|
|
|
|
4,793
|
|
|
12
|
%
|
|
Government
|
|
|
|
5,180
|
|
|
11
|
%
|
|
|
|
|
4,171
|
|
|
10
|
%
|
|
Maintenance, Modification & Asset Integrity
|
|
|
|
3,705
|
|
|
8
|
%
|
|
|
|
|
2,489
|
|
|
6
|
%
|
|
Total backlog
|
|
|
$
|
45,990
|
|
|
100
|
%
|
|
|
|
$
|
41,195
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
19,782
|
|
|
43
|
%
|
|
|
|
$
|
15,245
|
|
|
37
|
%
|
|
The Americas (excluding the United States)
|
|
|
|
9,797
|
|
|
21
|
%
|
|
|
|
|
11,426
|
|
|
28
|
%
|
|
Europe, Africa and the Middle East
|
|
|
|
13,756
|
|
|
30
|
%
|
|
|
|
|
11,559
|
|
|
28
|
%
|
|
Asia Pacific (including Australia)
|
|
|
|
2,655
|
|
|
6
|
%
|
|
|
|
|
2,965
|
|
|
7
|
%
|
|
Total backlog
|
|
|
$
|
45,990
|
|
|
100
|
%
|
|
|
|
$
|
41,195
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) During the first quarter of 2016, the company changed the
composition of its reportable segments to better reflect the diverse end
markets that the company serves. New awards and backlog for 2015 have
been recast to reflect these changes.
Fluor CorporationMedia Relations:Brian Mershon, 469-398-7621orBrett Turner, 864-281-6976orInvestor Relations:Geoff Telfer, 469-398-7070orJason Landkamer, 469-398-7222