) reported second-quarter 2013 net earnings of $161 million or 98
cents per share, well below the Zacks Consensus Estimate of
$1.01. Quarterly earnings were flat year over year on an absolute
basis, while EPS was up 3.1% from 95 cents a share. Profits
during the second quarter were primarily driven by growth in the
Oil & Gas segment, partially offset by a charge of $17
million related to outstanding embassy claims.
Total revenue came in at $7.2 billion, compared with $7.1
billion in second-quarter 2012. Top-line growth came on the back
of strong performance in the Oil & Gas
In the said quarter, the company inked contracts worth $7.2
billion. This included $3.3 billion in the Oil & Gas segment
and $3.6 billion in the Industrial & Infrastructure segment.
Consolidated backlog was $37 billion at quarter-end, down from
$37.5 billion in the second quarter of 2012, primarily due to the
downturn in the mining and metals market.
Revenues from the
Oil & Gas
segment reported year-over-year growth of 24% to $2.9 billion,
while segment profits rose 27% to $107 million. Revenues were
primarily driven by increased contributions from upstream and
petrochemical projects. Total contracts for the segment were $3.3
billion in the quarter, which included a vast upstream project in
Russia and a FEED (front-end engineering and design) award for
Sasol's ethane cracker in Louisiana. Backlog at the quarter-end
was $18.7 billion, compared with $19.5 billion at the prior year
Revenues in the
Industrial & Infrastructure
segment came in at $3.1 billion, down from $3.6 billion in the
past year, with segment profit falling to $129 million from $131
million in the second quarter of 2012. The decline in revenues
and profits was due to lackluster performance from the mining and
metals business line. Deals worth $3.6 billion were signed in the
said quarter. This included a contract for the expansion of the
Cerro Verde copper project in Peru for Freeport-McMoRan. Backlog
at the quarter-end was $16.2 billion versus $21.4 billion in the
past year, mainly due to a reduction in mining and metals
segment reported a year-over-year revenue decline of 23% to $675
million. The segment's profit plummeted 65% year over year
to $14 million.
Moreover, new contracts for the Government segment
totaled $256 million, down from $769 million reported in
second-quarter 2012, driven primarily by the timing of the
release of LOGCAP IV task orders. Backlog at the end of the
quarter was $531 million, compared with $505 million in the
Revenues in the
segment remained flat year over year at $154 million, while the
segment's profit fell to $28 million from $38 million in the past
year. A decline in both the top and bottom lines was due to
reduced contribution from the equipment business line.
segment reported revenues of $423 million compared with $206
million in the million in the past year, a whopping 105% rise due
to progress in gas-fired and solar projects New contracts in the
quarter totaled $59 million. The segment's backlog was $1.6
billion, down from $1.7 billion in the second quarter of
Balance Sheet & Cash Flow
Cash and marketable securities, including non-current,
amounted to $2.6 billion at the quarter-end, while long-term debt
was $496.4 million.
Cash provided by operating activities was $242.3 million for
the six-month period ended Jun 2013, compared with $81.7 million
in the prior-year period.
Due to slowdown of growth opportunities in the company's
mining and metals business line as well as unexpected claim
charges, the company has narrowed the upper-end guidance for
full-year 2013. The company now expects 2013 earnings to be in
the range of $3.85-$4.20 per share, down from its earlier
Fluor currently carries a Zacks Rank #4 (Sell). Stocks in the
same sector that are worth a look include
Lennox International, Inc.
MDC Holdings Inc.
Meritage Homes Corporation
). While Lennox and Meritage both have a Zacks Rank #1 (Strong
Buy), MDC Holdings carries a Zacks Rank #2(Buy).
FLUOR CORP-NEW (FLR): Free Stock Analysis
LENNOX INTL INC (LII): Free Stock Analysis
MDC HLDGS (MDC): Free Stock Analysis Report
MERITAGE HOMES (MTH): Free Stock Analysis
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