Sales, Verdict Reversal Boost Profit at Fluor

Construction firm Fluor Corp. said its third-quarter earnings surged past Wall Street estimates because of high revenue and a gain from an overturned judgment against the company.

Aliso Viejo-based Fluor, whose projects include refineries, power plants and factories, earned $131.2 million, or $1.51 a share, more than double the year-earlier net income of $47.3 million, or 57 cents. Revenue totaled $3.42 billion, up 45% from last year’s $2.36 billion.

The results, released after the markets closed, beat analyst estimates of 80 cents a share on revenue of $3.05 billion. The company’s stock, which closed at $65.22, down $1.89, rose more than 4% in after-hours trading.

Fluor said strong results from the company’s government, global, oil and gas services boosted earnings, as did an overturned verdict, which resulted in the reversal of a $32.9-million loss provision during the quarter. The $65-million verdict hurt the previous quarter’s results.

Based on “sizable” projects pending in the company’s oil and gas, power, mining, transportation and government markets, the company boosted its full-year earnings guidance to $2.40 to $2.60 a share from its previous estimate of $2.32 to $2.52. The company added that it expected fourth-quarter results to be particularly strong because it won a contract for a major gas complex in the Middle East.