Fluor Posts $36-Million Profit in First Quarter

Fluor Corp., the international engineering and construction giant, reported Thursday that it had a profit of $36 million for its first fiscal quarter.

The earnings, equal to 43 cents a share, contrasted with a loss of $4 million, or 5 cents a share, for the same period last year. Revenue for the company’s latest fiscal quarter, which ended Jan. 31, came to $1.81 billion, up 16% from $1.56 billion for the same period a year earlier.

“The earnings gains were due primarily to the continued growth in Fluor Daniel’s operating profits,” said Fluor Chairman Les McCraw, referring to the company’s core construction and engineering subsidiary.

McCraw added that even though the United States is improving, spending on the kinds of major projects that could bring new business to Fluor remains “lackluster.” The international market, however, shows more promise.

“Our broad geographic and industry diversity remains key to delivering earnings growth,” McCraw said.

John N. Simon, an analyst for Seidler Amdec Securities in Los Angeles, said that Fluor’s earnings met expectations. Though he said he is neutral on engineering companies at present, he considers Fluor to be one of the best.

Also, the earnings report contained signs of strength: New engineering and construction contract awards were $2.1 billion, up 11% from $1.9 billion for the company’s first quarter last year. And the work backlog rose to $14.9 billion, up from $11.5 billion.