Fluor Profit Flat During 2nd Quarter

Fluor Corp., the giant publicly traded engineering and construction company, on Tuesday reported flat earnings for the second quarter and warned that third-quarter earnings will miss analysts’ estimates, partly because of slackened demand from telecommunications companies.

The Aliso Viejo company reported that earnings of $36.1 million, or 45 cents a share, excluding the impact of compensation charges tied to stock prices. Net earnings were $34.2 million, or 43 cents a share.

Due to a change in the company’s calendar year, Fluor said, the closest period for comparison is the quarter ended July 31, 2000, when the company earned $33.3 million, or 44 cents a share. Analysts had estimated earnings of 45 cents a share, according to First Call/Thomson Financial

Fluor shares rose 74 cents to $39.53 on the New York Stock Exchange. The news was released after the close of regular U.S. trading.

Third-quarter earnings, excluding stock-based pay, will be about 50 cents a share, said spokesman Keith Karpe. Analysts had expected Fluor to earn 56 cents a share.

Fluor’s projects include building base stations for wireless phone networks and laying fiber-optic cable for telecommunications companies. Demand for fiber-optic cable has dropped this year because of overdevelopment.

Fluor said it plans to focus on more attractive markets, such as energy.

For the year, Fluor said it expects to earn $1.85 to $1.90 a share, excluding stock-based pay, down from the company’s earlier forecast of $2 a share.