Fluor Outperforms Estimate - Analyst Blog
February 21 2013 - 7:40AM
Zacks
Fluor Corporation
(FLR) reported fourth-quarter 2012 earnings per share from
continuing operations of $1.58; well above the Zacks Consensus
Estimate of earnings per share of 68 cents. The results include
after-tax charge of approximately $1.61 per diluted share, relating
to the adverse arbitration ruling on the Greater Gabbard wind farm
project loss per share of 3 cents compared with the earnings per
share of 90 cents in the prior year period.
For 2012, earnings per share from
continuing operations were $4.28, above the Zacks Consensus
Estimate of $3.38. Including a charge of approximately $1.57 per
share relating to the previously announced arbitration ruling on
the Greater Gabbard project, earnings for the quarter were $2.71
compared with $3.40 in 2011. Results for the year were aided by
strong double-digit growth in Oil & Gas and Global Services,
and strength in Industrial & Infrastructure.
Total Revenue
Total revenue was $7.02 billion in
fourth quarter of 2012 compared with $6.25 billion in the fourth
quarter of 2011.
For 2012, total revenue was $27.6
billion, up 18% year over year. The surge was driven by strong
growth in the Industrial & Infrastructure and Oil & Gas
business segments. Consolidated backlog at the end of the year was
$38.2 billion compared with $39.5 million at the end of
2011.
New awards in 2012 were strong at
$27.1 billion, compared with bookings of $26.9 billion a year ago,
including $12.6 billion in Oil & Gas and $9.5 billion in
Industrial & Infrastructure.
Segment
Revenue
Revenue from the Oil & Gas
segment was $9.5 billion in 2012, up 19% year over year, driven by
new awards and good order backlog. New awards won during the year
were approximately $12.6 billion with backlog amounting to $18.2
billion. Petrochemical projects in North America, Europe and Asia
aided backlog of the company.
Industrial & Infrastructure
revenue was $12.2 billion, an increase of 26% year over year. The
rise was due to increased mining and metals business. New awards
won during the year were $9.5 billion with backlog amounting to
$15.5 billion at the end of the year.
Government segment revenue was $3.3
billion compared with $3.4 billion in 2011. New awards won during
the quarter were $3.2 billion with backlog amounting to $978
million at the end of the year.
Global Services segment posted
revenue of $1.7 billion, an increase of 9% year over year, driven
by growth across all business lines. New awards won during the year
were $904 million with backlog amounting to $1.7 billion at the end
of the quarter.
Power segment revenue declined to
$841 million compared with $743 million. New awards won during the
quarter were $884 million with backlog amounting to $1.9 billion at
the end of the quarter. Weak demand for new power generation
projects continues to impact the segment.
Income &
Expenses
Consolidated segment profit for
2012 was $769 million, including the impact of a $416 million
pre-tax charge on Greater Gabbard, which compares with $1.0 billion
in segment profit in 2011.
Loss before taxes was $60 million
during the quarter compared with a profit before taxes of $248.6
million at the end of the prior-year quarter. Total cost and
expenses for the quarter amounted to $7.08 billion compared with
$6.0 billion.
Balance Sheet & Cash
Flow
Cash and marketable securities,
including noncurrent, amounted to $2.61 billion at the end of the
year compared with $2.76 billion at the end of 2011. Long-term debt
was $520.2 million compared with $513.5 million and shareholder’s
equity was $3.34 billion compared with $3.40 billion in the
year-ago quarter.
Outlook
The company maintained its 2013
earnings per share guidance to $3.85 – $4.35. Fluor derives
significant benefits from diverse end-markets.
Acting through its subsidiaries,
Fluor Corporation is one of the largest professional services
firms, providing engineering, procurement, construction and
maintenance as well as project management services on a global
basis. It serves a diverse set of industries worldwide, including
oil and gas, chemical and petrochemicals, transportation, mining
and metals, power, life sciences and manufacturing. It is also a
primary service provider to the U.S. federal government.
Fluor currently has a Zacks Rank #3
(Hold) while some of its competitors such as Quanta
Services Inc. (PWR) has a Zacks Rank #1 (Strong Buy) while
Tyco International Ltd. (TYC), Clean
Energy Fuels Corp. (CLNE) carry a Zacks Rank #2 (Buy).
CLEAN EGY FUELS (CLNE): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
QUANTA SERVICES (PWR): Free Stock Analysis Report
TYCO INTL LTD (TYC): Free Stock Analysis Report
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