Fluor’s Earnings Down for Quarter

Fluor Corp. reported lower earnings for the second quarter Wednesday despite a 46% increase in new-project awards during the period.

The Aliso Viejo-based engineering and construction company said its second-quarter net income fell to $44.8 million, or 54 cents a share, from $45 million, or 56 cents, during the same period a year ago.

That met analysts’ average expectations of 54 cents, according to Thomson First Call.

Revenue was unchanged at $2.2 billion.

“We’re actually pleased with the quarter,” said Kenneth H. Lockwood, the company’s vice president of corporate finance. “The real positive story,” he said, is in “strong growth in new awards and backing.”

Fluor’s order backlog rose to $12.9 billion, up 23% from $10.5 billion a year ago. John B. Rogers, an analyst with D.A. Davidson & Co., said the increase was an indication that “revenue should start to improve.”

New-project awards during the quarter jumped to $3.3 billion from $2.3 billion. They included an oil sands project in Canada, a manufacturing facility in Taiwan and a $700-million mining project in Chile.

In a recent research note, Leone T. Young, an analyst with Smith Barney, labeled the Chile deal “a nice win for the company.”

During the second quarter, revenue from government-related business jumped 68% to $591 million and revenue from oil and gas projects increased 10% to $705 million.

Power segment revenue, however, dropped 33% to $129 million. With few power projects remaining, earnings from this segment should be “significantly lower” for the rest of the year, the company said.

Fluor narrowed the range of its 2004 profit guidance to $2.15 to $2.35 a share.

The company said the range reflected in part “uncertainties regarding Iraq reconstruction activities.”

Fluor released earnings after the market closed Wednesday. Its shares slid 51 cents to $43.02 on the New York Stock Exchange.