Tomahawk, WI 05/20/2014 (Basicsmedia) – Fluor Corporation (NEW) (NYSE:FLR), a global leader in Engineering and Construction, caters to designing, procuring, fabricating, constructing and maintaining myriad complex projects, the world over. FLR announced the Q1-2014 results on May 1, 2014.

Q1 Lookback

Net earnings in the first quarter plummeted down from $166 million ($1.02/diluted share) in Q1-2013 to $149 million ($0.92/diluted share) in Q1-2014. Consolidated profits amassed saw a fractional decline from $294 million last year to $268 million, this year! In depth analysis of the profit count revealed that the Oil and Gas segment outperformed, as profits swelled by 32% YoY, whereas, other segments had to bear significant losses. Total revenues garnered also dropped from $7.2 billion in Q1-2013 to $5.4 billion, in Q1-2014. The most affected segments, this year, have been the Industrial and Infrastructure segment – precisely, Metals and Mining business endeavors. The consolidated backlog at the end of Q1-2014 shot up by $5.3 billion to $40.2 billion from $37.5 billion, a year ago.

CEO’s Views

The CEO at C (NEW) (NYSE:FLR), David Seaton, hailed the outperforming Oil & Gas segment, as it helped the company obtain new awards worth $9 billion, thereby enhancing the profit margin by a whopping 32%. However, he agreed that meek results by the other segments, backed by weak operations in other end-markets took the sheen off Oil & Gas segment’s effusing brilliant prospects!

Expenses’ Galore

Corporate G&A expense saw a brisk rise YoY to $38 million this year from $33 million last year. Moreover, expenses attributed to repurchases of company shares worth $200 million in Q1-2014 and a thumping payout of $26 million to shareholders, in dividends. However, FLR has managed to maintain a significant balance in cash and securities at $2.6 billion.

FLR Expects Enhanced Growth In FY 14-15

In the first quarter, Fluor Corporation (NEW) (NYSE:FLR) grew quite sluggishly, as the flamboyant business growth in Oil & Gas segment was miffed and muffled by a meek growth in other segments. FLR would expect to count on Oil & Gas for positive turnouts, desperately trying to put things together to ensure a stronger FY 2014-15. The company expects to improve its EPS between $4.10 and $4.45 per diluted share, in the upcoming quarters.

Projects Recently Awarded

After completion of the FEED in September 2013, FLR notched up a contract for construction of an aroma facility for BASF Petronas Chemicals in Kuantan, Malaysia, quite recently. On April 30, 2014, FLR also won a contract worth $743 million to construct a gas pipeline for Empresas ICA, S.A.B.de.C.V., the largest and most-reputed infrastructure company in Mexico. Despite new awards, sluggish growth of FLR in the last quarter has somehow resulted in investors shying away from buying Fluor Corporation (NEW) (NYSE:FLR)’s shares.

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