By noon, shares had plunged 12.6% to $43.13.
The construction services provider announced it expects to report full-year net income between $3.20 and $3.30 a share, far below previous guidance of $4.10 to $4.25 a share. Analysts surveyed by Thomson Reuters had expected fiscal earnings of $4.09 a share.
Full-year sales are expected to be around $11 billion, at the low end of its previous guidance of $11 billion to $11.5 billion."We are extremely disappointed with the company's fourth-quarter financial performance, which fell significantly short of our expectations," said CEO Martin Koffel in a statement. Management cited execution issues in its oil and gas division as reason for the deterioration in projected earnings. "We also experienced project delays caused, in part, by the residual effects of lower-than-expected natural gas prices and pipeline capacity," Koffel added. Over fiscal 2014, the San Francisco-based business expects revenues of $10.8 billion to $11.2 billion, with per-share earnings between $3.20 and $3.50. Analysts had consensus of $4.20 a share in net income and $11.28 billion in sales. Must Read: URS Corporation Announces Preliminary Results For Fiscal 2013 And Preliminary 2014 Outlook Must Read: Farm Slowdown Fears Weigh on Deere & Co.
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