Fluor 3Q net below target
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August 25, 1999: 12:53 p.m. ET
But engineering firm says it's on track to meet revised forecasts for full year
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NEW YORK (CNNfn) - Engineering and construction firm Fluor Corp. posted a 20 percent drop in its fiscal third-quarter profits Wednesday, slightly missing Wall Street's expectations, but said business conditions are improving.
The company, which announced 5,000 job cuts this year and plans to reorganize itself into four separate groups, earned $50.2 million, or 66 cents per diluted share, in the quarter ended July 31. That's down from $62.4 million, or 81 cents per share, in the same period last year. Revenues fell 11 percent to $3.1 billion.
Analysts polled by research firm First Call called for per-share profit of 67 cents in the latest period.
Despite the results, Fluor (FLR) said it remains on track to meet revised full-year earnings estimates of $2.65 per share, excluding a restructuring charge of $119.8 million after-tax, or $1.59 per share, recorded in the second quarter. Analysts cut their targets on the company after it announced its restructuring plan.
The company said annual earnings in 2000 should be equal to 1999 results or may "grow modestly," saying it is more optimistic about new contract awards and backlog thanks to strengthening oil prices and improved confidence in the economic situation in Asia and Latin America.
The company said the majority of the job cuts and consolidation have been carried out. It has already reduced the firm's headcount by 3,300 employees and closed 11 offices.
For the first nine months of the year, Fluor earned $148.1 million, or $1.96 per diluted share, compared with $171.5 million, or $2.14 per share, for the same period last year. Those results exclude the special restructuring charge. Revenues dropped 7 percent to $9.5 billion for the nine months.
Fluor shares slipped 11/16 to 41-1/8 in early afternoon trading Wednesday.
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Fluor
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