Fluor Cites Write-Downs in 1985’s $633-Million Loss

Fluor Corp. said Wednesday that it lost $633.3 million during its fiscal year ended Oct. 31., largely as a result of $400 million in asset write-downs. The 1985 loss, which was about $33 million more than Fluor had projected in October, was a reversal from net earnings of $1 million in 1984.

The larger-than-projected loss resulted from “year-end refinements, including a somewhat larger tax provision than originally estimated,” said Rick Maslin, a spokesman for the Irvine-based engineering, mining and construction company.

Revenue for the year was $4.16 billion, down slightly from revenue of $4.3 billion in the previous 12 months.

A Fluor spokesman blamed that decline on a long-running strike at some of the company’s West Virginia coal mines, lower minerals prices and stiffer competition for the company’s engineering and construction units.

With the bulk of the company’s write-downs taken during its fiscal fourth quarter, Fluor’s loss during the three months ended Oct. 31 was $570 million. In the corresponding period a year earlier, it posted a net loss of $21.8 million. Fourth-quarter revenue was $1.1 billion, up 10% from 1984.

Along with the write-downs, Fluor’s loss was caused by heavy penalties related to the early retirement of long-term debt. Fluor’s long-term debt at Oct. 31 totaled $259 million, down from $724 million a year earlier.