Engineering and construction company Fluor Corp. (FLR) said Thursday its first-quarter earnings increased from last year due mainly to higher revenues and supported by lower tax expenses.
Fluor's revenue for the quarter rose 24 percent from last year on strong growth across key segments, boosted by the Oil & Gas and Industrial & Infrastructure businesses. The revenue growth was somewhat offset by lower margins. Earnings for the quarter topped analysts' estimates, while revenue were in line with expectations.
Looking ahead, Fluor reaffirmed its earnings outlook for the full year 2012, while indicating the potential for growth as strong.
Fluor in the first quarter 2012 benefited from a lower income tax expense at $63.6 million, compared to $80 million last year. Fluor's first quarter 2012 tax rate was 26 percent, lower than the rate expected for fiscal 2012.
Oil & Gas revenue rose 23 percent year-over-year, on improvements in the upstream and downstream businesses. Industrial & Infrastructure revenue surged 40 percent, led by robust growth in the mining and metals business line. Global Services revenues were up 13 percent.
Although, Fluor's segment profit improved across most businesses, the overall segment margin for the quarter slid to 4 percent from 4.9 percent last year.
Irving, Texas-based Fluor Corp. reported first-quarter net earnings of $155 million or $0.91 per share, compared to $140 million or $0.78 per share last year.
On average, 22 analysts polled by Thomson Reuters expected earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter was $6.3 billion, compared to $5.06 billion last year. Analysts expected revenue of $6.3 billion.
The company's new awards in the quarter rose 35 percent to about $8.4 billion from last year, and includes awards of $3.9 billion in oil & gas, and $3.75 billion in Industrial & Infrastructure segments.
Backlog at the end of the quarter was $42.5 billion, up 14 percent from last year.
Fluor said it continues to expect full year 2012 earnings in the range of $3.40 to $3.80 per share, while analysts currently expect $3.75 per share.
FLR closed Thursday at $56.54, down $1.25 or 2.16%, on a volume of 2 million shares on the NYSE. In after hours, the stock rallied $0.98 or 1.73%. In the last 52 weeks, the stock moved in the range of $44.16 - $73.18.
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