Fluor Reports 2nd Quarter Results Including Growth in Oil & Gas Orders & Backlog
Fluor Reports Second Quarter Results Including Growth in Oil & Gas Orders and Backlog
•Earnings Per Share of $0.95 •New Awards of $7.3 Billion •Backlog of $43.0 Billion
IRVING, Texas--(BUSINESS WIRE)--Aug. 2, 2012-- Fluor Corporation (NYSE: FLR) today announced financial results for its second quarter ended June 30, 2012. Net earnings attributable to Fluor for the second quarter were $161 million, or $0.95 per diluted share, compared with $165 million, or $0.94 per diluted share in the second quarter of 2011. Segment profit for the quarter was $287 million, which compared with $280 million a year ago. During the quarter, the Company achieved double-digit profit growth in four segments, with only Power showing a decline. Consolidated revenue grew by 18 percent to $7.1 billion, from $6.0 billion in the second quarter of 2011.
New awards for the second quarter were strong at $7.3 billion, compared with a record $9.7 billion recorded in the second quarter of 2011. Current quarter awards included $5.0 billion in the Oil & Gas segment, $1.1 billion in Industrial & Infrastructure and $769 million in Government. Consolidated backlog for the quarter rose to a company record of $43.0 billion, up $2.7 billion from a year ago.
"Our strong performance to date clearly demonstrates the benefits of our end market diversification and strong global presence," said Chairman and Chief Executive Officer David Seaton. "We continue to see substantial market opportunities globally, and are particularly encouraged by a growing prospect list in the United States relating to the availability of low cost shale gas."
Fluor's financial condition remains very strong, with substantial liquidity including cash plus current and noncurrent marketable securities totaling $2.5 billion at the end of the quarter. During the second quarter, the company repurchased 2.2 million shares for $106 million. Corporate G&A expense for the second quarter of 2012 was $31 million, comparable to the second quarter of last year.
Based on strong year-to-date performance, the Company is raising the lower end of its 2012 EPS guidance to a range of $3.50 - $3.80 per diluted share, from its previous guidance of $3.40 - $3.80 per share.
Fluor's Oil & Gas business reported segment profit of $84 million, which rose 22 percent from the second quarter of 2011. Revenue grew 16 percent to $2.3 billion, from $2.0 billion last year. Second quarter results reflect higher contributions from the upstream business line. Oil & Gas new awards in the quarter were $5.0 billion, which compares with $3.2 billion in the second quarter of 2011. Second quarter awards included new scope and incremental releases for a major oil sands expansion project in Canada. Backlog at the end of the second quarter rose to $19.5 billion, up 16 percent from last quarter and up 30 percent from a year ago.
The Industrial & Infrastructure group reported segment profit of $121 million, up 11 percent from $109 million in the second quarter of 2011. Revenue for the segment was $3.4 billion, up 29 percent from a year ago. Strong second quarter results were driven by growth in the infrastructure and mining and metals business lines. New awards in the second quarter totaled $1.1 billion, including additional scope on an iron ore project in West Africa. Segment backlog at the end of the quarter declined to $19.5 billion, from $21.4 billion a year ago, mainly due to substantially higher revenue in the mining and metals business line.
Government grew segment profit by 26 percent to $40 million, from $32 million in the