Fluor Reports First Quarter 2019 Results
05/02/19
New awards for the quarter were
Corporate G&A expense for the first quarter of 2019 was
Outlook
As a result of a revision of our business forecast in Energy & Chemicals
and Mining, Industrial, Infrastructure and Power, the company is issuing
adjusted earnings per share guidance of
Business Segments
Fluor’s Energy & Chemicals segment reported segment profit of
The Mining, Industrial, Infrastructure & Power segment reported a
segment profit of
The Government segment reported segment profit of
The Diversified Services segment reported a segment profit of
First Quarter Conference Call – Revised Time
Fluor will now host a conference call today at
A replay of the webcast will be available for 30 days. A replay of the
call will be available by telephone for one week by dialing 888-203-1112
(U.S./
Non-GAAP Financial Measure
This press release contains discussions of consolidated segment profit,
adjusted earnings and adjusted earnings per diluted share that would be
deemed non-GAAP financial measures under
About
Founded in 1912,
Forward-Looking Statements: This release may contain forward-looking statements (including without limitation statements to the effect that the Company or its management "believes," "expects," is “positioned” or other similar expressions). These forward-looking statements, including statements relating to future growth, backlog, earnings and the outlook for the Company’s business are based on current management expectations and involve risks and uncertainties. Actual results may differ materially as a result of a number of factors, including, among other things, the cyclical nature of many of the markets the Company serves, including the Company’s Energy & Chemicals segment; the Company's failure to receive new contract awards; cost overruns, project delays or other problems arising from project execution activities, including the failure to meet cost and schedule estimates; intense competition in the industries in which we operate; failure to obtain favorable results in existing or future litigation, dispute resolution proceedings or claims, including claims for additional costs; failure of our joint venture or other partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; foreign economic and political uncertainties; client cancellations of, or scope adjustments to, existing contracts; failure to maintain safe worksites and international security risks; risks or uncertainties associated with events outside of our control, including weather conditions; client delays or defaults in making payments; the Company’s failure, or the failure of our agents or partners, to comply with laws; the use of estimates and assumptions in preparing our financial statements; the potential impact of certain tax matters; possible information technology interruptions or inability to protect intellectual property; new or changing legal requirements, including those relating to environmental, health and safety matters; the availability of credit and restrictions imposed by credit facilities, both for the Company and our clients, suppliers, subcontractors or other partners; the Company's ability to secure appropriate insurance; liabilities associated with the performance of nuclear services; foreign currency risks; the inability to hire and retain qualified personnel; the loss of one or a few clients that account for a significant portion of the Company's revenues; possible limitations on bonding or letter of credit capacity; risks or uncertainties associated with acquisitions, dispositions and investments; asset impairments; and risks arising from the inability to successfully integrate acquired businesses. Caution must be exercised in relying on these and other forward-looking statements. Due to known and unknown risks, the Company’s results may differ materially from its expectations and projections.
Additional information concerning these and other factors can be
found in the Company's public periodic filings with the
FLUOR CORPORATION | ||||||||||
CONSOLIDATED FINANCIAL RESULTS | ||||||||||
(in millions, except per share amounts) | ||||||||||
Unaudited | ||||||||||
CONSOLIDATED OPERATING RESULTS | ||||||||||
THREE MONTHS ENDED MARCH 31 | 2019 | 2018 | ||||||||
Revenue | $ | 4,192.7 | $ | 4,823.8 | ||||||
Cost and expenses: | ||||||||||
Cost of revenue | 4,131.0 | 4,766.0 | ||||||||
Corporate general and administrative expense | 61.0 | 57.3 | ||||||||
Restructuring and other exit costs | 27.4 | — | ||||||||
Interest expense, net | 5.7 | 9.6 | ||||||||
Total cost and expenses | 4,225.1 | 4,832.9 | ||||||||
Earnings (loss) before taxes | (32.4 | ) | (9.1 | ) | ||||||
Income tax expense | 10.9 | 3.0 | ||||||||
Net earnings (loss) | (43.3 | ) | (12.1 | ) | ||||||
Less: Net earnings attributable to noncontrolling interests | 15.1 | 5.5 | ||||||||
Net earnings (loss) attributable to Fluor Corporation | $ | (58.4 | ) | $ | (17.6 | ) | ||||
Basic earnings (loss) per share | ||||||||||
Net earnings (loss) | $ | (0.42 | ) | $ | (0.13 | ) | ||||
Weighted average shares | 139.8 | 140.1 | ||||||||
Diluted earnings (loss) per share | ||||||||||
Net earnings (loss) | $ | (0.42 | ) | $ | (0.13 | ) | ||||
Weighted average shares | 139.8 | 140.1 | ||||||||
New awards | $ | 3,400.2 | $ | 2,536.1 | ||||||
Backlog | $ | 39,333.3 | $ | 29,132.2 | ||||||
Work performed | $ | 4,081.7 | $ | 4,710.0 | ||||||
U.S. GAAP RECONCILIATION OF ADJUSTED EARNINGS (LOSS) AND ADJUSTED EARNINGS (LOSS) PER DILUTED SHARE | |||||
(in millions, except per share amounts) | |||||
THREE MONTHS ENDED MARCH 31 | 2019 | ||||
GAAP net earnings (loss) attributable to Fluor Corporation | $ | (58.4 | ) | ||
Restructuring and other exit costs | 27.4 | ||||
Foreign exchange impact | 26.6 | ||||
Tax effect of above items | (14.9 | ) | |||
Adjusted earnings (loss) | $ | (19.3 | ) | ||
GAAP earnings (loss) per diluted share | $ | (0.42 | ) | ||
Effect of adjustments to net earnings (loss) | 0.28 | ||||
Adjusted earnings (loss) per diluted share | $ | (0.14 | ) | ||
Weighted average shares | 139.8 | ||||
FLUOR CORPORATION | ||||||||||||||||
Unaudited | ||||||||||||||||
BUSINESS SEGMENT FINANCIAL REVIEW AND U.S. GAAP RECONCILIATION OF CONSOLIDATED SEGMENT PROFIT | ||||||||||||||||
($ in millions) | ||||||||||||||||
THREE MONTHS ENDED MARCH 31 | 2019 | 2018 | ||||||||||||||
Revenue | ||||||||||||||||
Energy & Chemicals | $ | 1,476.6 | $ | 1,943.0 | ||||||||||||
Mining, Industrial, Infrastructure & Power | 1,381.2 | 907.0 | ||||||||||||||
Government | 784.7 | 1,330.5 | ||||||||||||||
Diversified Services | 550.2 | 643.3 | ||||||||||||||
Total revenue | $ | 4,192.7 | $ | 4,823.8 | ||||||||||||
Segment profit (loss) $ and margin % (2) | ||||||||||||||||
Energy & Chemicals | $ | 19.4 | 1.3 | % | $ | 105.7 | 5.4 | % | ||||||||
Mining, Industrial, Infrastructure & Power | 0.4 | — | % | (120.4 | ) | (13.3 | )% | |||||||||
Government(1) | 16.6 | 2.1 | % | 48.2 | 3.6 | % | ||||||||||
Diversified Services | 10.2 | 1.9 | % | 18.8 | 2.9 | % | ||||||||||
Total segment profit $ and margin % | $ | 46.6 | 1.1 | % | $ | 52.3 | 1.1 | % | ||||||||
Corporate general and administrative expense | (61.0 | ) | (57.3 | ) | ||||||||||||
Restructuring and other exit costs | (27.4 | ) | — | |||||||||||||
Interest expense, net | (5.7 | ) | (9.6 | ) | ||||||||||||
Earnings attributable to noncontrolling interests | 15.1 | 5.5 | ||||||||||||||
Earnings (loss) before taxes | $ | (32.4 | ) | $ | (9.1 | ) | ||||||||||
(1) | Includes research and development expenses associated with NuScale totaling $16 million and $23 million for the three months ended March 31, 2019 and 2018, respectively. | |
(2) | Segment profit margin % is calculated as segment profit divided by segment revenue. | |
FLUOR CORPORATION | ||||||||||
Unaudited | ||||||||||
SELECTED BALANCE SHEET ITEMS | ||||||||||
($ in millions) | ||||||||||
March 31, 2019 | December 31, 2018 | |||||||||
Cash and marketable securities | $ | 1,904.5 | $ | 1,979.6 | ||||||
Total current assets | 5,242.6 | 5,440.9 | ||||||||
Total assets | 9,041.7 | 8,913.6 | ||||||||
Total short-term debt | 35.9 | 26.9 | ||||||||
Total current liabilities | 3,527.9 | 3,552.5 | ||||||||
Long-term debt | 1,650.9 | 1,661.6 | ||||||||
Shareholders' equity | 2,952.3 | 2,963.2 | ||||||||
SELECTED CASH FLOW ITEMS | ||||||||||
($ in millions) | ||||||||||
THREE MONTHS ENDED MARCH 31 | 2019 | 2018 | ||||||||
Cash utilized by operating activities | $ | (17.5 | ) | $ | (136.0 | ) | ||||
Investing activities | ||||||||||
Net sales and maturities (purchases) of marketable securities | 116.1 | 130.9 | ||||||||
Capital expenditures | (48.2 | ) | (65.1 | ) | ||||||
Proceeds from disposal of property, plant and equipment | 10.7 | 16.5 | ||||||||
Investments in partnerships and joint ventures | (12.0 | ) | (15.5 | ) | ||||||
Other items | 1.1 | 0.1 | ||||||||
Cash provided by investing activities | 67.7 | 66.9 | ||||||||
Financing activities | ||||||||||
Dividends paid | (30.0 | ) | (30.2 | ) | ||||||
Distributions paid to noncontrolling interests, net of capital contributions | (5.4 | ) | (22.9 | ) | ||||||
Other items | 5.6 | (4.9 | ) | |||||||
Cash utilized by financing activities | (29.8 | ) | (58.0 | ) | ||||||
Effect of exchange rate changes on cash | 20.6 | 9.0 | ||||||||
Increase (decrease) in cash and cash equivalents | $ | 41.0 | $ | (118.1 | ) | |||||
Depreciation | $ | 45.3 | $ | 51.9 | ||||||
FLUOR CORPORATION | ||||||||||||||||
Supplemental Fact Sheet | ||||||||||||||||
Unaudited | ||||||||||||||||
NEW AWARDS | ||||||||||||||||
($ in millions) | ||||||||||||||||
THREE MONTHS ENDED MARCH 31 | 2019 | 2018 | ||||||||||||||
Energy & Chemicals | $ | 1,003 | 29 | % | $ | 721 | 28 | % | ||||||||
Mining, Industrial, Infrastructure & Power | 1,256 | 37 | % | 1,339 | 53 | % | ||||||||||
Government | 331 | 10 | % | 43 | 2 | % | ||||||||||
Diversified Services | 810 | 24 | % | 433 | 17 | % | ||||||||||
Total new awards | $ | 3,400 | 100 | % | $ | 2,536 | 100 | % | ||||||||
BACKLOG TRENDS | ||||||||||||||||
($ in millions) | ||||||||||||||||
AS OF MARCH 31 | 2019 | 2018 | ||||||||||||||
Energy & Chemicals | $ | 17,441 | 44 | % | $ | 14,127 | 49 | % | ||||||||
Mining, Industrial, Infrastructure & Power | 15,092 | 38 | % | 10,273 | 35 | % | ||||||||||
Government | 4,231 | 11 | % | 2,399 | 8 | % | ||||||||||
Diversified Services | 2,569 | 7 | % | 2,333 | 8 | % | ||||||||||
Total backlog | $ | 39,333 | 100 | % | $ | 29,132 | 100 | % | ||||||||
United States | $ | 12,455 | 32 | % | $ | 11,673 | 40 | % | ||||||||
The Americas (excluding the United States) | 15,776 | 40 | % | 3,779 | 13 | % | ||||||||||
Europe, Africa and the Middle East | 8,757 | 22 | % | 12,232 | 42 | % | ||||||||||
Asia Pacific (including Australia) | 2,345 | 6 | % | 1,448 | 5 | % | ||||||||||
Total backlog | $ | 39,333 | 100 | % | $ | 29,132 | 100 | % | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190502005251/en/
Source:
Brian Mershon
Media Relations
469.398.7621 tel
Jason Landkamer
469.398.7222 tel
Investor Relations