Fluor posts 22 percent decline in 4th-qtr profit as oil and gas unit revenue slides

Fluor 4Q profit drops 22 percent as oil unit slips

IRVING, Texas — Fluor Corp. on Thursday said its fourth-quarter profit fell 22 percent, as revenue fell, most notably in its oil and gas and global services units.

For the final three months of 2009, the engineering and construction management firm earned $148.7 million, or 82 cents per share, compared with $189.5 million, or $1.03 per share, in the fourth quarter of 2008.

Revenue slipped 10 percent to $5.48 billion, from $6.07 billion the prior year.

Analysts polled by Thomson Reuters, on average, expected profit of 88 cents per share, on revenue of $5.48 billion.

Fluor said revenue in its oil and gas segment dropped 32 percent to $2.5 billion. Revenue also declined in its global services unit, dropping 20 percent to $545.7 million. Its power segment saw revenue slide 32 percent to $299.6 million.

Revenue in its industrial and infrastructure segment jumped 74 percent to $1.54 billion. Its government segment revenue rose 59 percent to $589.6 million.

For the year, profit fell 4 percent to $684.9 million, or $3.75 per share, from $716.1 million, or $3.89 per share, in 2008. Revenue slipped 1 percent to $21.99 billion from $22.33 billion the prior year.

Fluor said it is beginning to see positive signs of an economic recovery, but orders remain relatively low and it expects delays in the full release of major projects. The company cut its 2010 profit outlook to a range between $2.80 and $3.20 per share, from its prior forecast for profit between $3.20 and $3.60 per share.

Analysts were expecting, on average, profit of $3.42 per share, with estimates ranging from $3.17 to $3.60.

In aftermarket electronic trading, Fluor shares fell $2.67, or 5.9 percent to $42.38, from their close in the regular session at $45.05.