Fluor's 3Q profit up 7 percent, warns on 2013
IRVING, Texas (AP) — Shares of Fluor Corp. fell in after-hours trading Thursday after the engineering and construction company issued an outlook for 2013 that mostly fell below analysts' expectations.
Fluor warned that the slow global economy had "tempered" its view for next year. In the July-September quarter, $2 billion worth of mining projects were canceled.
For that period, net income was $144.6 million, or 86 cents per share, up 7 percent from $135.4 million, or 78 cents per share, a year ago. Revenue rose 18 percent to $7.14 billion from $6.04 billion.
Analysts, on average, predicted earnings of 95 cents per share on revenue of $7.17 billion, according to FactSet.
The Irving, Texas, company said revenue increased in its oil and gas, industrial and infrastructure, global services and power segments. Revenue fell in the government group in part because of lower-than-expected award fees from a contract in Afghanistan.
For the full year, Fluor expects profit of $3.60 to $3.80 per share, mostly below analysts' prediction of $3.77 per share. And for 2013, Fluor predicts earnings of $3.85 to $4.35 per share. Analysts have forecast $4.33 per share.
"Although we see growth in 2013, the anticipated resurgence in oil and gas is not expected to fully benefit financial results until 2014," CEO David Seaton said.
Fluor shares fell $1.82, or 3.2 percent, to $55.84 in after-market trading. The stock closed up $1.81 to $57.66 in regular trading, before results were released.