Q2 2011 Earnings Call
August 04, 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
Scott Levine - JP Morgan Chase & Co
Alexander Rygiel - FBR Capital Markets & Co.
Tahira Afzal - KeyBanc Capital Markets Inc.
Robert Connors - Stifel, Nicolaus & Co., Inc.
Christopher Wiggins - Oppenheimer & Co. Inc.
John Rogers - D.A. Davidson & Co.
Andrew Wittmann - Robert W. Baird & Co. Incorporated
Andy Kaplowitz - Barclays Capital
Sameer Rathod - Macquarie Research
Andrew Obin - BofA Merrill Lynch
Joseph Ritchie - Goldman Sachs Group Inc.
Will Gabrielski - Gleacher & Company, 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 Q1 2011 Results - Earnings Call Transcript
» Fluor's CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Fluor CEO Discusses Q3 2010 Results - Earnings Call Transcript
Thank you, operator. Welcome, everyone, to our conference call today. And with us in the room are David Seaton, Fluor's Chief Executive Officer; and Mike Steuert, Fluor's Chief Financial Officer. Our earnings announcement, as you know, 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 today.
Before getting started, I'd like to refer you to our Safe Harbor note regarding forward-looking statements, which is summarized on Slide 2. 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, and in our most recent Form 10-Q filed today, August 4, 2011.
During this call, we may also discuss certain non-GAAP financial measures. Reconciliations of these amounts with the comparable GAAP measures are reflected in our earnings release and are posted in the Investor Relations section of our website at investor.fluor.com.
With that, I'd like to turn the call over to David Seaton, Fluor's Chief Executive Officer. David?
Thanks, Ken. Good afternoon, everyone, and thank you for joining us on what has turned out to be a pretty interesting day in the markets. I'd like to start by highlighting a few of our accomplishments for the second quarter and ask you to please turn to Slide 3.
Net earnings attributable to Fluor for the second quarter were $165 million or $0.94 per diluted share. Our segment profit totaled $280 million and included substantial positive contributions from all of our businesses. Our consolidated revenues totaled $6 billion, which represents a 17% increase over the second quarter of 2010.
We also continue to have strong cash flow generation, ending the quarter with $2.5 billion in cash and marketable securities after utilizing $113 million during the quarter for repurchase of our shares. Increased demand for our services and our success in capturing key prospects is evident as new awards for the quarter were totaled $9.7 billion. We had substantial award activities across our businesses with Mining & Metals and Oil & Gas and Government contributing significantly during the quarter. As a result of our strong bookings, our backlog grew to a record $40.3 billion, which exceeds our previous high mark set last quarter by over $3 billion.
If you turn to Slide 4, the Oil & Gas segment had a number of wins during the quarter, including a significant award for utilities and offsites component of the Dow/Aramco Ras Tanura integrated project or RTIP in Saudi Arabia. We're particularly pleased about our success in winning this critically important award in the project, which will become the largest integrated petrochemical complex in the world. We were able to leverage our strong relationship with Dow and our experiences with them in the Middle East and our extensive history with the Saudi -- excuse me, in Saudi Arabia but, more importantly, reestablish our relationship with Aramco, which has been an important strategic initiative for Fluor for some time.
Other major awards included the polymers project in Saudi, additional scope on the West Qurna project in Iraq and the Kearl Oil Sands project in Canada in addition to a polysilicon project award in China. More importantly, we continue to work on numerous front-end projects and are tracking sizable prospects in our – in that particular market around the globe that will begin to help us as we go into 2012.
The Industrial & Infrastructure segment also had a very strong quarter with the group more than doubling their profit from a year ago. They also had strong new awards, including a $2.7 billion award of the major new scope relating to the Port Hedland Inner Harbour project and as part of the BHP Billiton's ongoing iron ore expansion program in Australia.