Fluor Corp. (NYSE: FLR), Irving, TX, third quarter sales were $5.4 billion, down 4% from third quarter 2008. Profit decreased 11% to $162 million.
For the first nine months of 2009, sales were $16.5 billion, up 1.2% from the prior year period. Profit improved 1.7% to $536 million.
“Strong new awards in 2008 and the first half of 2009 have contributed to Fluor’s $28 billion backlog, allowing us to maintain our selectivity and discipline when pursuing new prospects,” CEO Alan Boeckmann said. “Looking ahead to 2010, we are taking a cautious view of our markets at this time, but remain hopeful that a broader economic recovery will develop during the year.”
Segment Results
Oil & Gas segment sales were $2.9 billion, down 11% from third quarter 2008. Segment profit declined 8 percent to $189 million. The declines reflect declining new award and backlog levels in recent quarters. New awards in the third quarter totaled $1.2 billion, which compares with a record $5.1 billion a year ago.
Fluor’s Industrial & Infrastructure segment reported a 26% revenue increase to $1.1 billion, and segment profit rose 49% to $42 million, reflecting increases in both the infrastructure and mining and metals business lines.
Sales for the Government segment rose by 47% to $544 million for the third quarter of 2009. Segment profit for the quarter increased 34% to $24 million.
The Global Services segment reported revenue of $529 million, down 11% from the third quarter of last year. Segment profit was $0.5 million compared with $49 million a year ago, with the majority of the decline attributable to a $45 million provision for a collection issue on the completed paper mill revamp project in Louisiana.
Power segment sales were $317 million, down 40% from the third quarter of 2008. Due to substantial progress on backlog projects, segment profit in the third quarter increased to $45 million, up from $24 million a year ago.
