EARNINGS : CONSTRUCTION : Mining Slump Hits Fluor; Profit Declines 9%

Fluor Corp., hurt by its slumping lead-mining business, said Thursday that its quarterly earnings fell 9% despite improved operating profits from its core engineering and construction business.

Irvine-based Fluor posted net earnings of $25.8 million for its first fiscal quarter ended Jan. 31, compared to net earnings of $28.2 million for the same period a year ago. Revenue was $1.8 billion, down 6% from $1.9 billion for the comparable period a year earlier.

The news seemed not to discourage investors, who have been bidding up Fluor’s stock in anticipation that the company will get lucrative contracts to help rebuild Kuwait in the aftermath of the war. Fluor stock closed Thursday at $51.75 a share, up 87.5 cents in New York Stock Exchange trading.

Fluor had forewarned industry analysts that it expected lower earnings because of an economic slowdown that has hurt car sales and thus cut demand for batteries, the major users of lead. The nation’s mild winter weather also shrunk demand for replacement batteries, the company said.

Last year, Fluor completed the purchase of the remaining 42.5% interest in the Doe Run Co. for $125 million, making it the sole owner of North America’s largest lead-producing firm.

The Irvine firm said operating profits from Fluor Daniel, its primary engineering and construction unit, were up in the first quarter as the unit’s contract backlog grew 11% to $9.7 billion from $8.7 billion at the same time last year.

Last year, Fluor landed a management contract for building oil facilities in Saudi Arabia that some estimate may be worth up to $6 billion over the next 10 years.

In addition, the company is expected to play a large role in the post-war reconstruction of Kuwait, including the repair of refineries and oil fields.