USA: Fluor Reports Profit Growth

February 23, 2012

Fluor Corporation said its net earnings for 2011 were at $594 million, compared with $357 million 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.

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.

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LNG World News Staff, February 23, 2012