Fluor Profit Rises 11.5% in Fourth Quarter

Fluor Corp. said profit rose 11.5% in its fiscal fourth quarter but that most of the gain came from reducing cash for management performance bonuses, as the company anticipates another year of disappointing results. The Irvine-based engineering and construction services firm also said continuing economic turmoil could delay anticipated contracts in Asian markets and depress earnings next year. For the fourth quarter ended Oct. 31, Fluor earned $88 million, or $1.04 a share, up from $78.9 million, or 93 cents, a year earlier. Revenue rose 21%, to $4 billion from $3.3 billion, reflecting increased cash flow from existing multiyear contracts. For the full year, Fluor’s profit fell 45% to $146.2 million, or $1.73 per share, from $268.1 million, or $3.17, the previous year. Despite the sharp drop in profit, revenue rose 30%, to $14.3 billion from $11 billion. Fluor executives said profit for the new fiscal year should be in the range of $225 million to $250 million as the company continues a restructuring that began in fiscal 1997. Fluor’s stock fell $1.50 to $36.44 a share in NYSE trading.