Fluor Corp. headquarters. Photo courtesy of Fluor Corp.
Fluor Corp. financial results for its first quarter ending March 31, 2013 were driven by growth in its oil & gas and industrial & infrastructure segment businesses, the company says.
Irving, Texas-based Fluor Corp. designs, builds and maintains complex capital projects. Its success mirrors the emergence in recent years of a segment of truly global engineering, procurement and construction (EPC) companies. Fluor ranks 124 on the FORTUNE 500 list and had revenue of $27.6 billion in 2012.
Results included net earnings of $166 million, or $1.02 per diluted share. Consolidated segment profit for the quarter was $294 million, and revenue was $7.2 billion, up 16 percent and 14 percent, respectively, from the first quarter of 2012. Current quarter results were driven by growth in the Oil & Gas and Industrial & Infrastructure segments.
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New awards for the first quarter were substantial at $6.5 billion, including $3.1 billion in oil & gas and $2.2 billion in industrial & infrastructure. Consolidated backlog at the end of the quarter was $37.5 billion, down 12% from a year ago mainly due to a downturn in the mining and metals market.
“We are pleased with our financial results for the quarter, including $6.5 billion of new awards,” said Chairman and CEO David Seaton. “We are particularly encouraged by the strength of our oil & gas business.”
The company is maintaining its EPS guidance for 2013 at the previously announced range of $3.85 to $4.35 per diluted share. This, says the company is based on its positive expectations for oil & gas and industrial & infrastructure overall, which have the potential to offset uncertainty and delays in mining and metals.
Fluor’s oil & gas business reported segment profit of $105 million, generating a 42% increase from the first quarter of 2012. Revenue grew 36% percent to $2.8 billion, compared with $2.0 billion last year. First quarter results reflect growing contributions from upstream and petrochemical projects, the company said. New awards for the segment totaled $3.1 billion in the quarter, including petrochemical projects in the United States and China. Backlog at the end of the first quarter rose to $18.6 billion, up 11% from $16.8 billion a year ago.