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Q1 2011 Earnings Call
May 05, 2011 5:30 pm ET
David Seaton - Chief Executive Officer and Director
D. Steuert - Chief Financial Officer, Principal Accounting Officer and Senior Vice President
Kenneth Lockwood - Vice President of Corporate Finance and Investor Relations
Yuri Lynk - Canaccord Genuity
Alexander Rygiel - FBR Capital Markets & Co.
Scott Levine - JP Morgan Chase & Co
Tahira Afzal - KeyBanc Capital Markets Inc.
Robert Connors - Stifel, Nicolaus & Co., Inc.
Richard Paget - WJB Capital Group, Inc.
John Rogers - D.A. Davidson & Co.
Michael Dudas - Jefferies & Company, Inc.
Andrew Wittmann - Robert W. Baird & Co. Incorporated
Andy Kaplowitz - Barclays Capital
Will Gabrielski - Gleacher & Company, Inc.
Joseph Ritchie - Goldman Sachs Group Inc.
Jamie Cook - Crédit Suisse AG
Steven Fisher - UBS Investment Bank
Avram Fisher - BMO Capital Markets U.S.
Previous Statements by FLR
» Fluor's CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Fluor CEO Discusses Q3 2010 Results - Earnings Call Transcript
» Fluor Corporation Q2 2010 Earnings Call Transcript
Thank you, operator. Welcome, everyone, to Fluor's first quarter 2011 conference call. With us today are David Seaton, Fluor's Chief Executive Officer; and Mike Steuert, Fluor's Chief Financial Officer. Our earnings announcement was released this afternoon after the market closed, and we have posted a slide presentation on our website, which we will reference while making prepared remarks.
Before getting started, I'd like to refer you to our Safe Harbor note regarding forward-looking statements, which is summarized on Slide 2 of the presentation. During today's call and slide presentation, we will be making forward-looking statements, which reflect our current analysis of existing trends and information, and there is an inherent risk that actual results and experience could differ materially. You can find a discussion of those risk factors in our 10-K, which was filed on February 23, 2011.
During this call, we may discuss certain non-GAAP financial measures. Reconciliations of these amounts with the comparable GAAP measures are reflected in our earnings release and are also posted on the Investor Relations section of our website at investor.fluor.com.
Now with that, I'll turn the call over to David Seaton, Fluor's Chief Executive Officer. David?
Thanks, Ken, and good afternoon to everyone. I really appreciate you joining us. Today, we'll review our results for the first quarter and discuss our outlook and earnings guidance for 2011. I want to start by highlighting a few of our accomplishments in the first quarter and ask that you please turn to Slide 3 of the presentation deck.
Net earnings attributable to Fluor in the first quarter were $140 million or $0.78 per diluted share. Our segment profit totaled $249 million and included substantial positive contributions from all five of our business segments. The Industrial & Infrastructure segment led the way, nearly tripling their profit from a year ago, which is a significant growth in both mining and our infrastructure business lines. Consolidated revenue totaled $5.1 billion, which is an increase of about 3% over the first quarter of last year.
Now Fluor also had strong cash flow generation ending the quarter with $2.7 billion in cash and marketable securities after utilizing $246 million for the repurchase of shares. As a clear sign of the strength of Fluor's global market position, new awards came in at a very strong $6.2 billion. This is almost double the amount of new awards we reported just a year ago. That's significant award activity across our diversed portfolio with the exception of Power. Strong Mining & Metals awards were most significant contributor in the quarter, but we also had good contribution from Oil & Gas, Government and our Global Services business. As the results of our strong bookings, our backlog grew to $37.2 billion, which is a new company record.
If you would turn to Slide 4, the Oil & Gas segment had a number of awards across upstream, downstream, petrochemicals, as well as our Fluor Ocean Services business line, which is our offshore business line. The quarter included additional scope in West Qurna in Iraq, additional scope for the Kearl Oil Sands Project in Canada and the polysilicon project in China. We are active on numerous front-end programs that continue to track sizable projects in our target markets around the globe.
Industrial & Infrastructure segment booked another iron ore expansion project in Western Australia and also booked a sizable manufacturing award for carbon electrode project in the United States. We continue to track a very strong list of prospects particularly for large mining & metals programs.
During the first quarter, the Government Group booked $882 million in new awards, including LOGCAP's task orders in Afghanistan, and the initial six-month portion of the Portsmouth gaseous diffusion facility for the DOE.
Global Services added $422 million in new awards for the renewals and scope increases on long-term operations and maintenance contracts.
As expected, the Power segment that had new -- had a low new award volume, but the unit continues to work on new opportunities primarily involving gas-fired power opportunities and renewable energy, as well as the plant betterment business.