Fluor Reports Record Annual Earnings of $167 Million

Buoyed by operating profits at its engineering and construction businesses, Fluor Corp. on Tuesday announced record annual earnings of $167 million from continuing operations.

Net income for the fiscal year ended Oct. 31 was equal to $2.03 per share--a marked improvement over 1992 profit of $6 million, or 7 cents per share. Last year’s earnings were affected by after-tax charges of $129 million from the divestiture of a lead mining operation and an accounting change.

Revenue from continuing operations was $7.9 billion, up nearly 20% from $6.6 billion in fiscal 1992.

Fluor’s board of directors on Tuesday increased the company’s quarterly cash dividend 8% to 13 cents per share of common stock. The dividend increase was the sixth in a row and “moves the company closer to its guideline of paying out approximately 20% of prior year earnings,” said Fluor Chairman and Chief Executive Les McCraw.

Fluor stock rose 75 cents to $42.25 Tuesday on the New York Stock Exchange.

Operating profit at Fluor Daniel, the company’s engineering and construction business, rose by 16% to $221 million, while its order backlog rose to $14.8 billion, up slightly from last year’s $14.7 billion total.

A.T. Massey, Fluor’s low-sulfur coal investment, generated $71 million in operating profit, including a one-time, $10-million pretax charge for the settlement of a pension and benefits dispute with the United Mine Workers of America. Massey’s operating profit rose slightly over 1992, excluding the settlement charge.

Fourth-quarter net income was $48 million, or 59 cents per share. Fluor reported a $59-million net loss during the previous fourth quarter, including charges for the discontinued lead business. Fluor dropped the lead business in order to concentrate on its coal and construction and engineering businesses.

“While there has not yet been much improvement in certain U.S. and European engineering and construction markets, the outlook shows significant growth opportunities in the Asia Pacific region and Latin America,” McCraw said.

Fluor Reports Record Earnings

Fluor Corp. announced record earnings of $167 million on $7.9 billion in revenue for the fiscal year ended Oct. 31. In comparison, the company posted net earnings of $6 million on $6.6 billion in revenue for fiscal 1992. Figures in millions of dollars, except per-share data:

4th qtr 4th qtr 12 months 12 months 1992 1993 1992 1993 Revenue $1,832 $2,193 $6,601 $7,850 Net income (loss) (59) 48 6* 167 Per share (loss) ($0.73) $0.59 $0.07 $2.03

* Reflects a $129-million charge related to divestiture of lead business and a change in accounting procedures

Source: Fluor Corp.; Researched by JANICE L. JONES / Los Angeles Times