Fluor Planning to Consolidate Its St. Joe Units
Irvine-based Fluor Corp. said Thursday that it will consolidate the international and domestic operations of its St. Joe Minerals subsidiary into one unit. The move, which will entail job cuts among St. Joe’s 200 management personnel, is designed to ensure the survival of the mining company in an era of severely depressed metals prices, according to St. Joe officials.
“Given the condition of the commodities market, we are looking at all aspects to make sure we survive,” said Bill Tunney, vice president of administration for St. Joe, in a telephone interview. “There is a lot of red blood on the financial reports of commodities companies, and we are not going to wait until that happens here.”
For the record:
12:00 a.m. Feb. 9, 1985 FOR THE RECORD
Los Angeles Times Saturday February 9, 1985 Home Edition Business Part 4 Page 2 Column 3 Financial Desk 1 inches; 31 words Type of Material: Correction
The St. Joe Minerals subsidiary of Irvine-based Fluor Corp. reported net income of $10.9 million on revenue of $923.3 million for the 1984 fiscal year ended Oct. 31, 1984. An article Friday misstated the unit’s earnings.
St. Joe, which is based in Clayton, Mo., reported a $3.9-million loss on revenue of $433.7 million for the fiscal year ended last Oct. 31. Tunney said the company, which employs 13,000 worldwide, is doing everything it can to cut capital costs and reduce overhead.
N.Y. Operation to Move
Tunney would not disclose how many management jobs will be cut. He said the New York operations of St. Joe International will be transferred to the Clayton headquarters during the next few months.
The St. Joe restructuring is part of the new business strategy unveiled last month by David S. Tappan Jr., Fluor’s chairman and chief executive. Tappan said at the time that St. Joe, which Fluor purchased for $2.2 billion in cash and stock in 1981, wants to sell its mining interests around the world while retaining management control of the mines.
L. K. Wheelock, president of St. Joe Minerals, has been elected vice chairman and will report to John A. Wright, St. Joe’s chairman and chief executive. Peter J. Neff, president of St. Joe International, has been elected president of St. Joe Minerals and will continue to report to Wheelock.
K. R. Werneburg, president of St. Joe Domestic Minerals, has been elected to the newly created position of vice president-operations for St. Joe Minerals.
