U.S. News

Fluor 1Q income drops on weaker oil, gas results


Construction and engineering company Fluor Corp. said Monday its first-quarter net income fell by one third, citing a decline in oil and gas revenue.

CEO Alan Boeckmann said that the results reflect the company's expectations of a "delayed recovery as we go through 2010."

Shares fell 40 cents to $48.56 in after-hours trading.

Fluor said it earned $136.6 million, or 76 cents per share, in the three months ended March 31. That compares with $204.8 million, or $1.12 per share, in the same period last year.

Revenue fell 15 percent to $4.92 billion.

Analysts surveyed by Thomson Reuters expected 74 cents per share on $5.05 billion in revenue, on average.

The company said revenue in its oil and gas segment, its largest business unit, plunged to $2.1 billion from $3.4 billion a year ago due to slower business awards and a decline in backlog.

Industrial and infrastructure revenue rose 6 percent to $1.2 billion, while its government unit saw revenue jump 79 percent to $663 million. Revenues also increased in its power group, but global services revenue dropped 20 percent.

Fluor stood by its 2010 outlook of $2.80 to $3.20 per share in net income. Analysts expect $2.98 per share.