DOW JONES NEWSWIRES
Fluor Corp.'s (FLR) first-quarter earnings rose 11%, led by
strong revenue growth at the engineering-and-construction company's
oil-and-gas business and industrial-and-infrastructure segment.
The largest publicly traded engineering and construction company
in the U.S. has posted revenue growth for five consecutive
quarters.
Though construction spending remains weak, Davidson Research
last month expected that most engineering and construction
companies would see year-to-year improvements in revenue, backlog
and earnings during the first quarter. Prospects for oil-and-gas
projects--the largest end market--and mining appeared particularly
strong, Davidson Research said.
In the latest quarter Fluor's industrial-and-infrastructure
segment reported that revenue soared 40%, while its oil-and-gas
business posted revenue growth of 23%.
Chairman and Chief Executive David Seaton said Fluor's strong
international presence helped drive new awards, including sizable
awards in oil and gas production, refining and mining.
New awards rose to $8.39 billion from $6.2 billion a year
earlier. As of March 31, backlog grew to a record $42.45 billion
from $37.19 billion a year earlier and $39.48 billion in the fourth
quarter.
Fluor reported a profit of $154.9 million, or 91 cents a share,
up from $139.7 million, or 78 cents a share, a year earlier.
Revenue jumped 24% to $6.29 billion. Analysts polled by Thomson
Reuters most recently projected earnings of 87 cents on revenue of
$6.3 billion.
Gross margin fell to 4.4% from 5.3%.
Shares of Fluor, which affirmed its 2012 earnings guidance, were
up 2 cents at $56.66 and were inactive in after-hours trading.
Through the close, the stock remains down 17% in the past year,
despite rising 13% since the start of 2011.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com