Fluor Corp. (NYSE: FLR), Irving, TX, reported sales for the third quarter of $6.7 billion, a decrease of 6.3 percent compared to the same period a year ago. Profit increased 19.6 percent to $173 million.
Fluor’s oil & gas business reported profit of $108 million, a 24 percent increase over the third quarter of 2012. Sales grew 13 percent to $2.9 billion. Results reflect growing contributions from upstream and petrochemical projects.
The industrial & infrastructure group reported segment profit of $132 million, compared with $145 million in the third quarter of 2012. Sales were $2.7 billion, which declined from $3.5 billion a year ago due to lower contributions from the mining and metals business line. Results reflect favorable performance in the industrial services and infrastructure business lines, offset by a decline in mining and metals.
The government group reported segment profit of $38 million, up from $23 million in the third quarter of 2012 when profits were impacted by reduced award fees on the LOGCAP IV contract in Afghanistan. Sales declined to $675 million from $790 million a year ago. Results reflect a reduction in LOGCAP IV task order volume from a year ago.
Segment profit for global services was $25 million in the third quarter, which compares with $29 million a year ago. Sales were $150 million, compared with $159 million a year ago. Lower segment results were primarily driven by reduced contributions from the equipment business line.
Fluor’s power group reported segment profit of $8 million, including expenses of $13 million for research and development associated with the company’s investment in NuScale. This compares with an overall segment loss of $6 million a year ago, which included $16 million of NuScale expenses. Sales increased to $302 million, compared with $170 million a year ago, due to construction progress on solar and gas-fired projects.
For the first nine months, sales for Fluor were $21.1 billion, an increase of 2.5 percent compared to the same period a year ago. Profit increased 8.7 percent to $501 million.
