FLR said Q2 results were impacted by $714M in pre-tax charges resulting from an operational and strategic review of its businesses as well as project developments during the quarter.
FLR's Energy & Chemicals segment reported a $229M segment loss vs. a year-ago $97M profit, hit by $186M in pre-tax charges for late design changes, schedule-driven cost growth and subcontractor negotiations on a fixed-price offshore project; segment revenue fell 30% Y/Y to $1.4B from $2B a year ago, although ending backlog was $15.5B compared to $12.4B a year ago.
The company expects Energy & Chemicals revenue for H2 will decline by 15%-20% vs. H2 2018, while operating profit margins for this year's H2 are expected to improve modestly from the prior year.
Given today's announcements and the ongoing strategic review of its business and operations, FLR said it is withdrawing all previously issued earnings guidance for 2019.
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