Fluor Rebounds to Earn $10.3 Million in Quarter

Reflecting a rebound in industrial construction, Fluor Corp. on Monday announced net earnings of $10.3 million for the second quarter of fiscal 1988. It reported a net loss of $52.6 million for the same quarter a year earlier.

The Irvine firm’s revenues for the second quarter ended April 30 were $1.1 billion, up from $900 million for the second quarter of fiscal 1987.

For the first six months of fiscal 1988, Fluor posted net earnings of $19.3 million. The corporation reported a net loss of $85.9 million for the first half of fiscal 1987. Revenues for the first six months were $2.2 billion, up from $1.8 billion during the same period a year ago.

‘Continuing Improvement’

David S. Tappan Jr., chairman and chief executive officer of the engineering and construction firm, said the second-quarter results “reflect continuing improvement in operations and the positive business conditions affecting our markets.”

He said all three of Fluor’s business segments recorded improved profitability in the second quarter, in contrast with a year ago, with the engineering and construction units reporting the most significant gains. Its lead and coal operations were also ahead of last year.

G. Bryan Dutt, a securities analyst with the New Orleans-based firm of Howard, Weil Financial Corp., said he was particularly impressed by the growth of Fluor’s work backlog, which increased 25% to $5.5 billion. It was $4.4 billion a year ago.

He said the depth of the backlog indicates that Fluor’s financial comeback still has “strong momentum.”

After two years of heavy losses and extensive restructuring, Fluor returned to profitability in the fourth quarter of fiscal 1987 and has remained in the black.

Dutt said Fluor is benefiting from the current “phenomenal” growth of the chemical industry, which is calling upon engineering and construction companies to assist its expansion.

In addition, Dutt said, the weak dollar has encouraged a surge of new capital spending by heavy manufacturing industries in the United States, which are now better able to compete in the world marketplace than in recent years.