(RTTNews) - Engineering and construction firm Fluor Corp. (FLR: News ) said Monday its third quarter profit declined 11% over last year, hurt by weak performance at its Oil & Gas segment, and the Global Services segment. Looking ahead, the company lowered its earnings outlook for fiscal year 2009. Following the news, shares of Fluor lost more than 6% in after-hours trading.

For the third quarter, net earnings attributable to Fluor were $162 million, down 11% from $182 million in the prior year quarter. Earnings per share dropped to $0.89 from $1.00 in the previous year quarter. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the third quarter. Analysts' estimates typically exclude special items.

The Irving, Texas-based company's segment profit for the quarter fell 8% to $300 million from $324 million a year ago.

While three of the five business segments reported double-digit earnings growth over 2008, the Oil & Gas segment profit declined by 8% and the Global Services segment profit plunged over last year, due to a $45 million provision related to a collection issue on a completed paper mill revamp project in Louisiana.

Segment margins were 5.5% for the third quarter, compared to 5.7% in the year-ago quarter.

Third quarter revenue declined 4% to $5.4 billion from $5.7 billion in the same quarter of 2008, due to decreases in the Oil & Gas and Power segments. Sixteen analysts had a consensus revenue estimate of $5.49 billion for the third quarter.

Oil & Gas segment's revenue decreased 11% to $2.9 billion, due to declining new award and backlog levels in recent quarters.

Revenue from Industrial & Infrastructure segment increased 26% to $1.1 billion, helped by increases in both the infrastructure and mining and metals business lines.
Revenue for the Government segment soared 47% to $544 million for the third quarter of 2009, attributable to contributions from the Savannah River project and LOGCAP IV task orders in Afghanistan.

The Global Services segment reported revenue of $529 million, down 11% over a year earlier.

Fluor's Power segment generated revenue of $317 million, a 40% drop from the third quarter of 2008, as a large coal-fired project in Texas progressed closer to completion.

New project awards for the third quarter plunged to $2.9 billion from $8.8 billion a year ago.

Consolidated backlog at the end of the third quarter was $28.0 billion, down 23% over the prior year quarter.

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