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Fluor Net Income Plummets 59%

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Times Staff Writer

Engineering and construction firm Fluor Corp. reported lower first-quarter sales and net income Tuesday as special charges offset higher operating profits at most of the firm’s businesses.

Net income at the Aliso Viejo-based company sank 59% to $16.9 million, or 21 cents a share. That compares with net profit of $41.2 million, or 51 cents, for the year-ago period.

Sales from continuing operations dropped 16% to $2.1 billion from $2.5 billion in 2002’s first quarter.

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Fluor Chairman and Chief Executive Alan Boeckmann said the quarterly results were driven by “solid operating performance,” particularly in the firm’s unit that builds power plants. That business recorded 64% higher profit despite revenue that plummeted 80% in the first quarter because of a downturn in new construction.

The company’s net earnings were hurt by a $10.4-million charge for an accounting change as well as a $13.5-million write-down on the value of Fluor’s only remaining construction equipment dealership.

Fluor’s ongoing businesses posted first-quarter operating profit of $40.9 million, or 51 cents a share, up from $36.2 million, or 45 cents, in the same period last year. On average, analysts expected operating earnings of 50 cents a share, according to Thomson First Call.

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The company recently won two contracts for reconstruction work in Iraq.

Fluor stock rose 26 cents to $35.40 in New York Stock Exchange trading Tuesday. The company released its earnings report after the market closed.

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