first-quarter earnings almost doubled from a year ago, boosted by strong results in its government and global infrastructure units.
Fluor earned $88.9 million, or $1 a share, in the quarter, compared with $47.4 million, or 56 cents a share, a year ago. Sales rose 27% from last year to $3.6 billion, easily eclipsing the Thomson First Call consensus estimate of $3.33 billion.
"Earnings per share exceeded expectations, and we continue to see substantial new project opportunities in all business groups," Fluor said. "The outlook for Fluor is very positive, with many of our markets in strong upturns, driving continued growth in demand for engineering, procurement, construction and maintenance services globally. Clients continue to announce significant capital-spending plans, and the company is particularly well-positioned to capitalize on these trends in oil and gas, petrochemicals, infrastructure, mining and power."
The company expects to earn $2.90 to $3.20 a share in the full year, up from its old guidance range, which was $2.80 to $3.10 a share. The Thomson First Call consensus estimate is for earnings of $3.07 in all of 2006.
"The first quarter was very strong, but contributions from the government group's contingency response work for FEMA, reconstruction work in Iraq, and the nearly-complete Fernald project are likely to be materially lower in the second half of 2006," Fluor said.
The stock closed at $93.75 Monday, or 31.3 times the high end of the updated 2006 guidance.
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