URS Corp. (URS), which provides engineering, construction and technical services worldwide, said Tuesday after the markets closed that its fourth quarter profit fell from last year, hurt by lower revenues and an impairment charge. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations.
The San Francisco-based company reported net income for the fourth quarter of $33.8 million or $0.41 per share, compared to $45.2 million or $0.54 per share for the year-ago quarter.
The latest quarter results include an an after-tax, non-cash charge of $19.6 million or $0.24 per share for the write-down of an intangible asset related to the discontinuation of the "Washington" trade name and the transition to a single URS name, which the company announced on December 22.
On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.55 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter fell 22% to $2.11 billion from $2.71 billion in the same quarter last year. Fourteen analysts had a consensus revenue estimate of $2.35 billion for the fourth quarter.
URS changed the names of its three financial reporting segments in the fourth quarter of fiscal 2009. The new segment names are: Infrastructure and Environment, formerly the URS Division; Federal Services, formerly the EG&G Division; and Energy and Construction, formerly the Washington Division.
Fourth quarter revenue from the company's infrastructure and environment segment fell to $733.7 million from $849.1 million a year ago. However, the segment's operating income increased to $66.0 million from $58.6 million last year.
Federal services segment's revenue for the fourth quarter declined to $620.7 million from $683.5 million a year earlier. The segment's operating income for the fourth quarter was $29.9 million, including a $3.8 million impairment charge related to the "Washington" trade name, compared to $29.1 million in the fourth quarter of last year.
Fourth quarter revenue from the company's energy and construction segment dropped to $773.4 million from $1.2 billion in the year-ago quarter. The segment reported a fourth quarter operating loss of $1.2 million, including a $29.0 million charge related to the impairment of the "Washington" trade name, compared to operating income of $45.5 million in the prior year quarter.
The company ended the quarter with a backlog of $17.3 billion, up slightly a year ago. The company's book of business at the end of the year was $29.4 billion, up slightly from $29.1 billion at the end of 2008.
For the fiscal year ended January 1, 2010, URS' net income was $269.1 million or $3.29 per share, compared to $219.8 million or $2.59 per share in fiscal year ended January 2, 2009.
Excluding items, the company's earnings for the fiscal year ended January 1, 2010 would have been $3.16 per share.
Revenues for the fiscal year 2009 fell to $9.25 billion from $10.09 billion the prior year.
Analysts expected the company to earn $3.04 per share on revenue of $9.49 billion for the fiscal year 2009.
Looking forward, URS forecast revenues of $9.4 billion to $9.7 billion and GAAP earnings of $3.35 to $3.45 per share for fiscal 2010.
Analysts currently expect the company to earn $3.26 per share on revenue of $9.89 billion for the current fiscal year.
Among others in the industry, AECOM Technology Corp. (ACM) last month reported higher first quarter profit and reaffirmed its full year earnings guidance.
Last week, Fluor Corp. (FLR) reported fourth quarter profit that fell 22% from a year ago, hurt by a higher effective tax rate and weak performance at its oil & gas and global services segments. The company also lowered its full year 2010 earnings outlook.
McDermott International Inc. (MDR) on Monday reported fourth quarter profit that more than doubled from a year ago despite lower revenue, as there was strong improvement in operating profit at its offshore oil & gas construction segment.
URS shares, which have traded in a range of $27.66 to $53.12 over the past year, closed Tuesday's regular trading session at $47.66, up 87 cents or 1.86% and gained an additional 74 cents or 1.55% in after hours trading.
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