) reported first-quarter 2013 earnings per share of $1.02, 6.3%
higher than the Zacks Consensus Estimate of 96 cents. Quarterly
earnings were up 12.1% year over year from 91 cents a share.
Profits during the first quarter were driven by growth in the Oil
& Gas and Industrial & Infrastructure segments.
Total revenue was $7.2 billion in first quarter 2013 compared
with $6.3 billion in the fourth quarter of 2012, reflecting a
14.2% increase. The robust growth in the top line was primarily
attributable to strong performance in the oil & gas sector.
New awards for the quarter were strong at $6.5 billion. This
included $3.1 billion in Oil & Gas and $2.2 billion in
Industrial & Infrastructure. Consolidated backlog was $37.5
billion, which is down year over year, primarily due to the
downturn in the Mining & Metals market.
Revenues from the
Oil & Gas
segment reported revenue growth of 36% to $2.8 billion from $2.0
billion last year. Revenues were primarily driven by increasing
contributions from upstream and petrochemical projects. New
awards for the segment were $3.1 billion in the quarter, which
included petrochemical projects in the United States and China.
Backlog at the end of the first quarter was $18.6 billion, up 11%
from $16.8 billion a year ago.
Revenues in the
Industrial & Infrastructure
segment came in at $3.1 billion versus $3.0 billion a year ago.
The marginal improvement was driven by increased contributions
from the infrastructure business line. New awards for the segment
totaled $2.2 billion in the first quarter, primarily driven by
large infrastructure programs, including the Tappan Zee Bridge in
New York and the Horseshoe road project in Texas. Backlog at the
end of the quarter was $16.0 billion versus $23.3 billion a year
ago, mainly due to reduced mining and metals awards over the past
Due to an organizational realignment in the quarter, financial
results for the Industrial & Infrastructure segment now
include the operations and maintenance business line, which was
previously reported as part of the Global Services segment.
reported revenue decline of 12% to $751 million compared with
$850 million in the prior-year quarter. Revenues for the quarter
were impacted by lower LOGCAP IV task order volume and lower
activity levels at the Savannah River site for the Department of
New awards for the segment totaled $756 million in the first
quarter, driven primarily by the timing of the release of LOGCAP
IV task orders in Afghanistan. Backlog at the end of the quarter
was $964 million compared with $695 million a year ago.
Revenues in the
segment contracted 18% to $150 million in the quarter. Decline in
the top line was attributable to reduced contributions from the
equipment business line.
Since the operations and maintenance business line is now
reported as part of the Industrial & Infrastructure segment,
currently there are no new awards or backlog for the Global
reported revenues of $383 million compared with $175 million a
year ago, reflecting 119% growth due to progress on gas-fired and
solar projects. New awards for the quarter were $448 million.
This includes an extension of a long-term fossil power
maintenance contract in Texas and the award of an engineering,
procurement and construction contract for a solar facility in
Calif. Segment backlog was $1.9 billion, up from $1.8 billion in
the first quarter of 2012.
Income & Expenses
Consolidated segment profit for the first quarter was $294
million, primarily driven by growth in the Oil & Gas and
Industrial & Infrastructure segments.
Earnings before taxes were $306.3 million during the quarter
compared with $240.8 million at the end of the prior-year
quarter. Total cost and expenses for the quarter amounted to $6.9
billion compared with $6.0 billion in the prior-year quarter.
Balance Sheet & Cash Flow
Cash and marketable securities, including non-current,
amounted to $2.49 billion at the end of the year compared with
$2.31 billion at the end of 2012. Long-term debt was $496.3
million compared with $520.2 million and shareholders' equity was
$3.48 billion compared with $3.34 billion in the year-ago
The company maintained its 2013 earnings per share guidance of
$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 #2 (Buy). In addition, some
other companies in the same sector that are worth considering at
the moment are
Chicago Bridge & Iron
Orion Marine Group Inc
Quanta Services Inc
), all having Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
QUANTA SERVICES (PWR): Free Stock Analysis
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