) recently received a contract from
Baxter International Inc.
) to manage the early phase of the construction of a new
biotechnology facility near Covington, Georgia; about 45 miles
southeast of Atlanta. The value of the construction management
contract has not been revealed; although it was included in the
third quarter 2012 bookings of Fluor.
Currently, mass excavation and earth works are being carried
on at the site of the project. The project aims to build up a
facility which will provide therapies to treat a number of
chronic and acute conditions, including immune deficiencies and
critical care patients globally. Fluor is actively involved in
this global welfare project with its Greenville, S.C. office
providing construction management support.
As per the plans, production at the new biotechnology facility
of Baxter will start in 2018. The site will be flexible enough to
expand with the rise in the global market needs.
Fluor is one of the few engineering and construction companies
with the technological expertise, logistics and procurement
capabilities, and project management experience needed to execute
on a large variety of projects. Given its strong financial
position, Fluor has ample financial resource to pursue a niche
acquisition program aimed at strengthening its considerable
service breadth. The company is delivering solid results, driven
by its diversified business model and targeted new awards
However, the company bears the risk of cost overruns in
approximately 25% of the dollar value of its contracts. It may
experience reduced profits, or in some cases, losses under these
contracts if costs increase above its estimates. It depends on
third parties to complete many of its contracts. Fluor is set to
release its fourth quarter and full year 2012 earnings results on
February 20, 2013.
Fluor serves a diverse set of industries worldwide, including
oil and gas, chemical and petrochemicals, transportation, mining
and metals, power, life sciences and manufacturing. It is also a
primary service provider to the U.S. federal government.
Fluor currently has a Zacks Rank #3 (Hold) while some of its
competitors such as
Jacobs Engineering Group
Tyco International Ltd.
), carry a Zacks Rank #2 (Buy).
BAXTER INTL (BAX): Free Stock Analysis Report
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