Fluor Raises 2021 Guidance and Reports Second Quarter 2021 Results
- Q 2 2021 loss per share from continuing operations of $0.08; adjusted EPS from continuing operations of $0.32; raising full year adjusted EPS guidance to $0.60 to $0.80 per diluted share
- $600 million convertible preferred offering supports debt reduction strategy; $26 million reduction through July, anticipate substantial debt retirements in 2021
- $192 million received in outside investment for NuScale this year
- $100 million in proceeds for the sale of AMECO North America and a P3 investment; AMECO South America and Stork divestitures underway
IRVING, Texas– Fluor Corporation (NYSE: FLR) announced financial results for its second quarter ended June 30, 2021. Revenue for the quarter was $3.2 billion, with a net loss from continuing operations of $14 million, or $0.08 per common share. Results for the quarter include a charge related to a legacy infrastructure project. Results were also negatively impacted by $49 million of foreign currency effects and certain other adjustments outlined in the table at the end of this release. Excluding the $49 million of other adjustments, and using the higher diluted weighted average share count for this level of earnings, adjusted earnings per diluted share were $0.32. The weighted average share count for the second quarter of 156 million reflects the effect of the convertible preferred offering. Consolidated segment profit for the quarter, which includes NuScale expenses, was $67.2 million compared to $72.4 million in the second quarter of 2020.
“I am confident that we remain on the right path to achieve the strategic priorities that we established earlier this year,” said David Constable, chief executive officer of Fluor. “Despite a charge on a legacy infrastructure project in the quarter, I am otherwise pleased with the progress we are making on the remaining fixed price projects in our portfolio.”
Second quarter new awards were $1.4 billion, and ending consolidated backlog was $21.1 billion, down from $23.8 billion last quarter. Fluor’s cash and marketable securities at the end of the quarter were $2.7 billion compared to $2.0 billion last quarter due to proceeds from the convertible preferred offering. Since completing the offering, Fluor has retired approximately $26 million in debt and anticipates using the proceeds from the convertible preferred offering to retire additional debt by the end of the year. Corporate general and administrative (G&A) expenses in the second quarter were $31 million, down from the first quarter due to the impact of stock price driven incentive compensation.