Fluor Reports Fourth Quarter and Full Year 2011 Results

Thursday, Feb 23, 2012

Fluor Corporation (NYSE: FLR) today announced financial results for its fiscal year ended December 31, 2011. Net earnings attributable to Fluor for 2011 were $594 million, or $3.40 per diluted share, compared with $357 million, or $1.98 per diluted share in 2010. Consolidated segment profit for the year was $1.0 billion, compared with $621 million in 2010 which was impacted by significant pre-tax charges on two infrastructure projects. Results in 2011 reflect a substantial increase in the profit contribution from the Industrial & Infrastructure (I&I) segment. Consolidated revenue for the year totaled a record $23.4 billion, which was up 12 percent from $20.8 billion a year ago, mainly due to strong growth in the mining and metals business line within the I&I segment.

“I am pleased that Fluor has delivered another year of strong new awards, resulting in double-digit backlog growth and earnings per share at the top end of our expectations for 2011”

Full year new awards were strong at $26.9 billion, which compares with record bookings of $27.4 billion a year ago, reflecting substantial mining & metals orders in the I&I segment and sizable orders in Oil & Gas. Consolidated backlog rose to a new year-end high of $39.5 billion, up 13 percent from a year ago.

“I am pleased that Fluor has delivered another year of strong new awards, resulting in double-digit backlog growth and earnings per share at the top end of our expectations for 2011,” said Chairman and Chief Executive Officer David Seaton. “We continue to have a strong prospect list which supports our growth projection for 2012.”

Corporate G&A expense for the year rose to $163 million, up from $156 million a year ago, mainly due to higher management incentive compensation which was partially offset by overhead cost reductions. Fluor’s financial condition remains very strong, with cash plus current and noncurrent marketable securities totaling $2.8 billion, which is up from $2.6 billion a year ago. During 2011, the Company generated $890 million in cash flow from operating activities, repurchased $640 million worth of Fluor shares, and paid out $88 million in dividends. The Company also took advantage of attractive market rates and completed a $500 million offering of 10-year unsecured notes to enhance cash balances in the United States.

Outlook

Despite continuing economic uncertainty, the Company remains encouraged about future opportunities across its diverse end-markets, and is maintaining its EPS guidance for 2012 at the previously announced range of $3.40 to $3.80 per diluted share, which includes the estimated impact of ongoing operating expenses of approximately $0.20 per share associated with the Company’s investment in NuScale Power.

Business Segments

Fluor’s Oil & Gas unit reported segment profit of $276 million in 2011, down from $344 million in 2010 which included higher margin contribution from projects that were completed or nearing completion. Revenue rose by 3 percent to $8.0 billion in 2011. Full year new awards in 2011 totaled $8.3 billion, which compares with $9.7 billion in 2010. In the fourth quarter, the segment booked a $1.5 billion award for the construction management of Syncrude Canada Ltd.’s Mildred Lake project in Alberta, Canada. Ending Oil & Gas backlog rose 6 percent from a year ago to end 2011 at $15.1 billion.

Source: Business Wire

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