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Fluor Doubles Its Quarterly Net Earnings

Times Staff Writer

With more work and a hefty settlement on a longstanding claim, Fluor Corp. in Irvine posted net income of $33.9 million for its third quarter ended July 31, more than double last year’s third-quarter earnings of $13.4 million.

The engineering, construction and mining firm’s earnings came on revenue of $1.6 billion, a 23% increase over last year’s revenue of $1.3 billion.

For the nine months ended July 31, net earnings were $79.4 million, compared to $32.8 million in earnings for the same period last year. Total revenue climbed 31% to $4.6 billion this year from $3.5 billion last year.

Fluor’s core engineering and construction business, operated through its Fluor Daniel subsidiary, has been brisk, said David S. Tappan Jr., Fluor’s chairman and chief executive.

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New engineering and construction awards jumped 34% in the third quarter and 28% in the first nine months from the same periods last year. The business accounts for about 85% of Fluor’s revenue.

One indicator of Fluor’s health in the near future is the amount of business it has generated but has yet to complete.

That backlog at the end of July was $8.2 billion, a 39% increase over $5.9 billion at the same time last year.

In July, the company announced that it had received $43 million in a settlement with the National Iranian Oil Co. for unpaid bills on a refinery construction job interrupted in 1979 by the revolution in Iran. The settlement contributed $9 million to the bottom line.

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Fluor also owns Massey Coal Co. in Richmond, Va., and a 57% stake in Doe Run Lead Co. in St. Louis. Tappan said the mining firms’ operating incomes were down slightly from last year’s figures. Massey was somewhat affected by a United Mine Workers strike against another firm, he said.


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