Fluor Corporation ( FLR ) reported
fourth-quarter 2012 earnings per share from continuing operations
of $1.58; well above the Zacks Consensus Estimate of earnings per
share of 68 cents. The results include after-tax charge of
approximately $1.61 per diluted share, relating to the adverse
arbitration ruling on the Greater Gabbard wind farm project loss
per share of 3 cents compared with the earnings per share of 90
cents in the prior year period.
For 2012, earnings per share from continuing operations were
$4.28, above the Zacks Consensus Estimate of $3.38. Including a
charge of approximately $1.57 per share relating to the previously
announced arbitration ruling on the Greater Gabbard project,
earnings for the quarter were $2.71 compared with $3.40 in 2011.
Results for the year were aided by strong double-digit growth in
Oil & Gas and Global Services, and strength in Industrial &
Total revenue was $7.02 billion in fourth quarter of 2012
compared with $6.25 billion in the fourth quarter of 2011.
For 2012, total revenue was $27.6 billion, up 18% year over
year. The surge was driven by strong growth in the Industrial &
Infrastructure and Oil & Gas business segments. Consolidated
backlog at the end of the year was $38.2 billion compared with
$39.5 million at the end of
New awards in 2012 were strong at $27.1 billion, compared with
bookings of $26.9 billion a year ago, including $12.6 billion in
Oil & Gas and $9.5 billion in Industrial &
Revenue from the Oil & Gas segment was $9.5 billion in 2012,
up 19% year over year, driven by new awards and good order backlog.
New awards won during the year were approximately $12.6 billion
with backlog amounting to $18.2 billion. Petrochemical projects in
North America, Europe and Asia aided backlog of the company.
Industrial & Infrastructure revenue was $12.2 billion, an
increase of 26% year over year. The rise was due to increased
mining and metals business. New awards won during the year were
$9.5 billion with backlog amounting to $15.5 billion at the end of
Government segment revenue was $3.3 billion compared with $3.4
billion in 2011. New awards won during the quarter were $3.2
billion with backlog amounting to $978 million at the end of the
Global Services segment posted revenue of $1.7 billion, an
increase of 9% year over year, driven by growth across all business
lines. New awards won during the year were $904 million with
backlog amounting to $1.7 billion at the end of the quarter.
Power segment revenue declined to $841 million compared with
$743 million. New awards won during the quarter were $884 million
with backlog amounting to $1.9 billion at the end of the quarter.
Weak demand for new power generation projects continues to impact
Income & Expenses
Consolidated segment profit for 2012 was $769 million, including
the impact of a $416 million pre-tax charge on Greater Gabbard,
which compares with $1.0 billion in segment profit in 2011.
Loss before taxes was $60 million during the quarter compared
with a profit before taxes of $248.6 million at the end of the
prior-year quarter. Total cost and expenses for the quarter
amounted to $7.08 billion compared with $6.0 billion.
Balance Sheet & Cash Flow
Cash and marketable securities, including noncurrent, amounted
to $2.61 billion at the end of the year compared with $2.76 billion
at the end of 2011. Long-term debt was $520.2 million compared with
$513.5 million and shareholder's equity was $3.34 billion compared
with $3.40 billion in the year-ago quarter.
The company maintained its 2013 earnings per share guidance to
$3.85 - $4.35. Fluor derives significant benefits from diverse
Acting through its subsidiaries, Fluor Corporation is one of the
largest professional services firms, providing engineering,
procurement, construction and maintenance as well as project
management services on a global basis. It 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 Quanta Services Inc. ( PWR ) has a Zacks Rank
#1 (Strong Buy) while Tyco International Ltd. ( TYC ), Clean
Energy Fuels Corp. ( CLNE ) carry a Zacks
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