Fluor's 3rd-quarter earnings falls 11 percent

Fluor's 3rd-quarter profit declines 11 percent; lowers 2009 profit outlook

• On 5:24 pm EST, Monday November 9, 2009

IRVING, Texas (AP) -- Engineering and construction firm Fluor Corp. said Monday its third-quarter earnings fell 11 percent on lower revenue at its oil and gas and power units, and forecast a weaker profit for next year.

The company earned $162 million, or 89 cents per share during the July to September period, compared with $182 million, or $1 per share, in the prior-year period,

Revenue slipped 4 percent to $5.42 billion from $5.67 billion a year earlier. Fluor's power segment and oil and gas unit fell 40 percent and 11 percent, respectively.

Fluor's revenue in its oil and gas unit fell on declines in new awards and backlog for the unit, including the loss of a $1.2 billion gas processing project in Russia. The company's power segment also saw its revenue drop as a large coal-fired project in Texas came closer to completion.

Analysts polled by Thomson Reuters forecast a profit of 90 cents per share with revenue of $5.49 billion.

The company said it was awarded $2.88 billion in new projects in the third quarter compared with $8.81 billion in the period a year ago.

Based on recent cancellations and delays, Fluor trimmed its earnings prediction for the full year to $3.75 to $3.90 per share -- down from its previous forecast of $3.80 to $4.10 per share. Analysts are looking for a profit of $3.85 per share.

For 2010, the company issued weak guidance in the range of $3.20 to $3.60 per share based on recent project delays, but inline with Wall Street's forecast of $3.58 per share.

Separately, Fluor's board elected David Seaton, 48, its chief operating officer, a newly created position, effective immediately.

Shares fell $3.01, or 6.3 percent, to $48.01 in after-hours trading, after adding $2.61,or 5.8 percent, to close at $48.01.

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