Fluor Stays on Road to Recovery; Earnings Up

Continuing its financial recovery, Fluor Corp. on Monday reported third-quarter earnings of $13.4 million, compared to a net loss of $32.9 million during the same quarter of fiscal 1987. The Irvine-based engineering, construction and natural resources company reported revenue of $1.3 billion for the quarter ended July 31, up from $909 million.

For the first nine months of fiscal 1988, the company posted earnings of $32.8 million, compared to a net loss of $118.9 million during the same period in fiscal 1987. Revenue for the first nine months was $3.5 billion, up from $2.7 billion a year ago.

“Third quarter results reflect continuing strength in Fluor’s operations and markets,” David S. Tappan Jr., Fluor’s chairman and chief executive officer, said in a prepared statement. “New awards for Fluor Daniel, our engineering and construction unit, continue to be robust, and business conditions for our natural resources investments remain favorable.”

Tom Samuelson, a securities analyst with the Chicago investment firm of Duff & Phelps, said Fluor’s third-quarter financial results were “right in line” with the expectations of Wall Street analysts who follow the company.

Samuelson said that Fluor is “benefiting from a surge in U.S. manufacturing business activity” that has greatly increased demand for the services of engineering and construction companies.

He said he expects Fluor’s earnings to rise in the fourth quarter and continue to climb in fiscal 1989 even if the general economy slightly weakens.