Oil and gas revenue boosts Fluor 2Q net income

Fluor says 2nd-quarter net income improved as oil and gas revenue rise 24 percent

Associated Press

IRVING, Texas (AP) -- Flour's second-quarter net income edged higher thanks in part to steady business from the energy sector.

Revenue from its oil and gas unit rose 24 percent to $2.86 billion, which countered a decline in revenue from its industrial and infrastructure and government divisions.

Net income increased to $161.4 million, or 98 cents per share, from $161.2 million, or 95 cents per share. Revenue rose 1 percent, to $7.19 billion, from $7.13 billion.

Analysts had forecast net income of $1 per share and $7.19 billion in revenue, according to FactSet.

However, the company did take a one-time charge of $17 million on claims related to its embassy project in Haiti for the U.S. Department of State. With no other claims pending, shares rose $2.32, or 3.7 percent, to $64.88 in afternoon trading. The stock is trading close to annual highs.

Fluor Corp. said industrial and infrastructure business fell 14 percent to $3.08 billion and government revenue fell 23 percent to $674.5 million.

Based on the one-time charge and a slowdown in mining and metals, the company lowered its full-year net income forecast to a range of $3.85 to $4.20 per share from $3.85 to $4.35 per share. Analysts expect $4.14 per share on average.

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