Fluor 3Q Profit Up 20 Percent Despite Revenue Drop
By The Associated Press
NEWS: Fluor Corp. said Thursday that third-quarter profit rose despite lower revenue due to weakness in its government and mining-industry business. The engineering, construction and operations company forecast a range of possible full-year profit, with the midpoint falling below analysts' expectations, and the company's shares fell in after-hours trading.
DETAILS: Fluor said it increased sales to the oil and gas, and power industries but saw lower revenue from industrial and government customers.
NUMBERS: Net income was $173 million, or $1.05 per share, compared with $144.6 million, or 86acents per share, a year earlier. Revenue fell to $6.68 billion from $7.14 billion. Analysts surveyed by FactSet expected $1.03 per share on revenue of $7.23 billion.Revenue rose in services to oil and gas companies, but fell in the industrial and government segments. The government group's profit rose, however, because the 2012 quarter included a reduced award on fees for a contract in Afghanistan. FUTURE: Fluor said it expects 2013 earnings of $3.90 to $4.10 per share, a slight reduction in midpoint from the previous forecast of $3.85 to $4.20 per share. Analysts were expecting $4.07 per share. For 2014, the Irving, Texas-based company forecast profit of $4.10 to $4.60 per share on growth in oil and gas but a decline in mining and metals and continuing reductions for its government group. Analysts were forecasting $4.58 per share. STOCK: The shares fell $1.79, or 2.4 percent, to $74.22 in regular trading. During after-hours, they were down another $2.92, or 4 percent, to $71.30.
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