Fluor slammed by big Q2 loss; withdraws earnings guidance

Aug. 01, 2019 5:36 PM ETFluor Corporation (FLR)FLRBy: Carl Surran, SA News Editor13 Comments
  • Fluor (NYSE:FLR) -11.3% after-hours after swinging to a Q2 loss of $3.96/share from a year-ago $0.81/share profit and a 16% Y/Y decline in revenues to $4.09B.
  • 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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