=Fluor Corporation (FLR) reported earnings on Thur 1 Aug 2019 (a/h)

IRVING, Texas--(BUSINESS WIRE)--

Fluor Corporation (FLR) today announced financial results for its second quarter ended June 30, 2019. The second quarter was a net loss attributable to Fluor of $555 million, or $3.96 per diluted share, compared to net earnings of $115 million, or $0.81 per diluted share a year ago. Consolidated segment loss for the quarter was $573 million compared to a profit of $194 million a year ago. Second quarter revenue was $4.1 billion compared to $4.9 billion last year.

Earnings attributable to Fluor were negatively impacted by pre-tax charges of $714 million. These charges were the result of an operational and strategic review of Fluor’s businesses, as well as project developments during the quarter. This review included meetings with clients, subcontractors and suppliers, and settlements of outstanding claims. Results for the second quarter also include $46 million, related to restructuring charges for Fluor’s Stork and equipment business operations.

New awards for the quarter were $2.4 billion, including $732 million in Energy & Chemicals, $574 million in Diversified Services, $544 million in Government and $510 million in Mining, Industrial, Infrastructure & Power. Consolidated ending backlog of $35.5 billion compares to $29.3 billion a year ago.

"We understand the implications of the magnitude of these results,” said Carlos Hernandez, Fluor’s chief executive officer. “During the quarter, we commenced a comprehensive operational and strategic review of Fluor’s businesses. These charges reflect our efforts over the past few months to meet with clients, subcontractors, suppliers and our project teams to evaluate and address the status of our current projects. I believe this strategic review, coupled with our increased scrutiny on new prospects, will deliver improved value for our shareholders.”

Corporate G&A expense for the second quarter of 2019 was $53 million compared with $18 million a year ago. Results for last year included a foreign exchange benefit of $25 million. Fluor’s cash and marketable securities balance at the end of the second quarter was $1.9 billion, flat to last quarter. During the quarter, the company generated $109 million in cash from operating activities, and paid out $29 million in dividends.