WASHINGTON (dpa-AFX) - Engineering and construction company Fluor Corp. (FLR) reported a 52 percent decline in profit for the second quarter from last year on a double-digit decline in revenues as well as a one-time charge.
However, earnings per share from continuing operations for the quarter beat analysts' expectations, while revenues missed their estimates. Looking ahead, the company affirmed its earnings outlook for fiscal 2014.
David Seaton, Chairman and Chief Executive Officer of Fluor said, 'Our Oil & Gas group continues to generate substantial double-digit profit growth. While we see continued weakness in many non-energy-related markets, we are very encouraged by the robust slate of major oil, gas and petrochemical prospects globally.'
Irving, Texas-based Fluor's second-quarter net earnings attributable to the company were $77.8 million or $0.48 per share, down from $161.4 million or $0.98 per share in the same period last year.
In the latest quarter, the company received an appellate court ruling relating to the Doe Run lead business, which the company sold in 1994. As a result, the company recorded a charge of $85.2 million or $0.54 per share from discontinued operations, which may result in cash outflows in the future.
Earnings per share from continuing operations were $1.02, up from $0.98 per share in the year-ago period. On average, 24 analysts polled by Thomson Reuters expected the company to earn $0.99 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined 27 percent to $5.25 billion from $7.19 billion in the same period last year, mainly due to a significant reduction in revenue from the Industrial & Infrastructure segment's mining and metals business line. Analysts had a consensus revenue estimate of $5.98 billion.
Consolidated segment profit for the quarter increased 9 percent to $313 million from $288 million in year-ago period. Segment profit results included a 57 percent increase in Oil & Gas, partly offset by declines in the Industrial & Infrastructure segment.
Fluor's oil and gas division revenues for the quarter edged down 1 percent from the year-ago period to $2.82 billion, while industrial & infrastructure unit revenues declined 52 percent to $1.49 billion.
Government segment revenues decreased 11 percent from last year to $598.6 million and global services units' revenues declined 6 percent to $145.1 million. Power group revenues were down 52 percent to $204.0 million.
Fluor's consolidated backlog at the end of the second quarter was $40.38 billion, up 9 percent from $37.05 billion a year ago.
Looking ahead to fiscal 2014, Fluor maintained its outlook for earnings from continuing operations in a range of $4.10 to $4.45 per share. Analysts currently expect full-year earnings of $4.25 per share.
In a separate statement, Fluor said its board of directors has declared a quarterly cash dividend of $0.21 per share on the company's common stock, payable October 2, 2014, to shareholders of record on September 3, 2014.
FLR closed Thursday's regular trading session at $72.87, down $2.17 or 2.89 percent on a volume of 2.00 million shares. However, in after-hours, the stock gained $0.13 or 0.18 percent to $73.00.
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