Fluor, a provider of EPCM and project-management services for petrochemical and refining industries, has reported revenue of $4.9bn for the first quarter of fiscal 2010 compared to $5.8bn in the same quarter last year.
Net earnings for the first quarter were $137m, or $0.76 per diluted share, compared to $205m, or $1.12 per diluted share in the same quarter of last year.
Consolidated segment profit for the quarter was $243m, compared to $332m in the same quarter last year. First quarter results reflect lower oil & gas revenue and profit, partly offset by growth in the power, government and industrial & infrastructure segments.
Fluor’s Oil & Gas business unit reported segment profit of $92m, down from $201m in the first quarter of 2009. Revenue was $2.1bn, compared with $3.4bn in last year quarter.
The Industrial & Infrastructure group reported segment profit of $32m, up 13% from the first quarter of 2009. Revenue for the segment was $1.2bn, up 6% from a year ago. Government posted segment profit of $35m, up 27% from the first quarter of 2009. Revenue for the quarter grew by 79% to $663m, compared with $371m in the year ago quarter.
Segment profit for Global Services was $27m in the first quarter, down from $47m a year ago, with revenue of $339m which was down 20%. Fluor’s Power group reported a doubling of first quarter segment profit to $56m on revenue of $534m, which increased 16% over the first quarter of 2009.
Alan Boeckmann, chairman and CEO of Fluor, said: “Fluor’s results for the quarter are consistent with our expectations for a delayed recovery as we go through 2010. Our end-market diversification has enabled us to deliver good profitability despite lower new award levels in recent quarters and the trailing impact of a significant reduction in spending by our oil and gas clients.”
New project awards for the first quarter were $3.4bn, compared to $5.5bn in new awards a year ago. The company has reaffirmed its 2010 EPS guidance range of $2.8-$3.2 per diluted share.