QUOTE AND NEWS
Forbes  Sep 25  Comment 
Investors in Fluor Corp. (NYSE: FLR) saw new options become available today, for the November 7th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the FLR options chain for the new November 7th contracts and...
OilVoice  Sep 24  Comment 
Fluor Corporation NYSE FLR was awarded an engineering procurement fabrication and construction contract by Fort Hills Energy L.P. for the utilities scope of the Fort Hills oil sands mining projec
newratings.com  Sep 23  Comment 
WASHINGTON (dpa-AFX) - Engineering and construction company Fluor Corp (FLR) said Tuesday it was awarded an engineering, procurement, fabrication and construction contract by Fort Hills Energy L.P. for the utilities scope of the Fort Hills oil...
TheStreet.com  Sep 23  Comment 
NEW YORK (TheStreet) --aFluor Corpa awas was downgraded to "market perform" from "outperform" with a lowered price target range of $70-$75 from its previous $103-$105 by analysts at Wells Fargoathis morning. The firm cited mounting risks to the...
Forbes  Sep 18  Comment 
Fluor, a company based in Irving, Texas USA, is still doing business in Mongolia. An earlier report this week by this author noted that Fluor had reportedly removed all foreign personnel from Mongolia rapidly at the first hint that the government...
Forbes  Sep 17  Comment 
Fluor, a company based in Irving, Texas USA, has reportedly removed all foreign personnel from Mongolia rapidly at the first hint that the government of Mongolia may have a tax inquiry for the company.
Benzinga  Aug 5  Comment 
In a report published Tuesday, D.A. Davidson & Co. analyst John B. Rogers reiterated a Neutral rating on Fluor (NYSE: FLR), but lowered the price target from $85.00 to $82.00. In the report, D.A. Davidson & Co. noted, “Fluor reported EPS of...
OilVoice  Aug 1  Comment 
Fluor Corporation NYSE FLR announced financial results for its second quarter ended June 30 2014. Net earnings attributable to Fluor from continuing operations were 163 million or 1.02 per dilu
SeekingAlpha  Aug 1  Comment 
Fluor (NYSE:FLR) Q2 2014 Earnings Call July 31, 2014 5:30 pm ET Executives Kenneth H. Lockwood - Vice President of Corporate Finance & Investor Relations David T. Seaton - Chairman, Chief Executive Officer and Chairman of Executive...
SeekingAlpha  Jul 31  Comment 
The following audio is from a conference call that will begin on July 31, 2014 at 17:30 PM ET. The audio will stream live while the call is active, and can be replayed upon its completion. Listen now Complete Story »




 

Fluor Corp. (NYSE: FLR) builds and operates projects requiring substantial engineering know-how. The company builds everything from oil refineries to factories, highways, wind farms, and military bases - although its projects for oil and gas companies represent more than half of revenues.

For 2009, Fluor earned total revenues of $22.0 billion, compared to the previous year's revenues of $22.3 billion.[1] Due to this decline in revenues, its net income declined as well, from $716 million in 2008 to $685 million in 2009.[1]

Business Overview

Over the past several years, Fluor has benefited from the Oil & Gas segment increasing its levels of capital spending to support an increase in global demand for oil and gas. However, the global credit crisis and falling oil prices resulted in some project delays and cancellations in 2009 as some of Fluor's customers reassessed their capital spending plans. In addition, the capacity expansion in the North American refining market is nearing an end, further impacting the segment's ability to maintain its recent level of performance. Though the prospect of growth for the Industrial & Infrastructure and Government segments remains promising, the weak economy continues to affect the Global Services segment, with uncertainty over the timing of a broad-based recovery. The Power segment continues to be impacted by delays in obtaining air permits for coal-fired power plants and the lingering effects of the global credit crisis and recession.

Business Segments

Fluor breaks its operations into five broad segments: i) Oil and Gas, ii) Industrial & Infrastructure, iii) Government, iv) Global Services, and v) Power.

Oil & Gas (53.8% of 2009 Sales)[2]

In this segment, Fluor offers design, engineering, procurement, construction and project management services to energy-related industries. Although growth in this segment was relatively flat between 2008 and 2009, this segment had been posting very rapid growth as many oil and gas companies increased their capital expenditures in order to meet growing demand for oil and gas. Fluor participates in the Mexican and Central American oil, gas, power and chemical markets through a joint venture with Group ICA known as ICA Fluor. This segment can be divided into the following sub-categories:

  1. Upstream oil and gas production: In this sub-category, the increase in demand and price of oil and gas has led to an increased demand for Fluor's services in this segment. These services include the production, processing, and transporting of oil and gas resources, including the development of new fields and liquefied natural gas (LNG) projects.
  2. Downstream refining focuses on modernizing and modifying Fluor's clients' existing refineries to satisfy environmental requirements, as well as developing new refineries worldwide. Fluor also plays an influential role in the domestic and international clean fuels markets, offering engineering and construction services to oil refineries to meet the stronger environmental policies being enacted by numerous nations worldwide.
  3. Petrochemicals market mainly focuses on the expansion of ethylene and polysilicon production, for which Fluor mainly offers project management and procurement services. On the global scale, Middle Eastern markets play a particular importance for their supply of raw oil, and the Chinese market is significant for its strong need for the company's petrochemical products.

Industrial & Infrastructure (21.9% of 2009 Sales)[3]

This segment, which posted total sales of $4.8 billion in 2009, provides engineering, procurement and construction services to industries such as transportation, mining, and telecommunications:

  1. Transportation focuses on providing consulting, engineering, and design services for roads, highways, bridges, railways, and airports
  2. Mining performs well when commodity prices and business, along with consumer demand, increase.
  3. Life Sciences primarily consists of providing services in the pharmaceuticals and biotechnology industries, along with erecting new medical facilities and keeping existing facilities operating.
  4. Telecommunications encompasses various designing, engineering, and construction services in the telecommunications industry, and gets most of its business from European markets.
  5. Manufacturing offers manufacturing services to a variety of industries, and has recently seen growth in glass manufacturing.
  6. Healthcare: A relative newcomer to the healthcare industry, Fluor is pursuing projects such as the construction for-profit and nonprofit healthcare centers and university medical centers.

Global Services (9.4% of 2009 Sales)[4]

The Global Services segment, which posted total revenues of $2.1 billion in 2009, focuses on helping industrial clients improve the performance of their plants and facilities through services such as operations and maintenance activities, small capital project engineering, site equipment and tool services, and temporary staffing and supply chain solutions. Fluor uses a variety of subsidiaries to perform these services, such as:

  1. Plant Performance Services LLC performs small capital engineering and construction, electrical, mechanical, turnaround, and demolition services.
  2. American Equipment Company, Inc. (AMECO) provides construction services at plant sites of both third party clients and company clients throughout North and South America, South Africa, and the Middle East.
  3. TRS Staffing Solutions, Inc. is a global enterprise of staffing specialists that provides both company and third party clients with recruiting and permanent placement services.

Power (5.9% of 2009 Sales)[5]

This segment, which had total revenues of $1.3 billion in 2009, offers services in the gas fueled, solid fueled, renewables, nuclear, and plant betterment marketplaces. Fluor places particular attention to the coal-fired generation market, the gas fueled power market, and the nuclear power market.

Government (9.0% of 2009 Sales)[6]

Fluor's Government Group, which posted total revenues of $1.98 billion in 2009, provides services to the United States government, focusing on the Department of Energy, the Department of Homeland Security, and the Department of Defense. Examples of these services include disaster relief and operations services to the military. In fact, the company obtained a great deal of revenue from its military services in Iraq. Fluor continues to pursue attractive domestic and international opportunities in this segment with the Department of Energy, the National Nuclear Security Administration, and the Nuclear Decommissioning Authority (United Kingdom).

Key Trends and Forces

Rising oil prices greatly benefit Fluor's business

With increasing domestic demand for oil, coupled with increasing international demand for energy in areas such as China and India, the price of oil and gas has increased significantly over the past decade.[7] This benefits Fluor greatly, because oil and gas companies will be more eager and willing to spend money for drills, rigs, and other engineering intensive products that Fluor provides. This in turn raises Fluor's revenues.

Fluor's services depend heavily on the unpredictable cyclical demand of the markets it serves

Fluor depends on the economic well-being of the wide range of industries it serves, the majority of which are cyclical in nature. In particular, the oil and gas, mining, and petrochemical industries are cyclical and undergo fairly severe economic downturns from time to time.

Weak U.S. Dollar benefits Fluor's international sales

Because Fluor reports its revenues in U.S. dollars but does over half of its business internationally, it is affected by exchange rates. When the value of the dollar depreciates, Fluor's international sales grow in dollar terms, while also making Fluor's products and services cheaper for international customers.

Sandra skievrr:Hej Malin!Valdigt informativ blogg du har! Superbra forr alla sjuka dar ute. Jag fick reda pa mina prover idag och antligen vet jag vad felet ar!Mina provsvar sag ut sa har:KortisolTest 1 2,8Test 2 0,5Test 3 0,5Test 4 0,5Totalt 4,3Dhea medelvarde: 5,81Ska till en naringsterapeut pa fredag. Vad tycker du om detta? Ska jag aven soka lakarvard? Behovs det?Hoppas livet leker for dig!

References

  1. 1.0 1.1 FLR 10-K 2009 Item 6 Pg. 26
  2. FLR 10-K 2009 Item 7 Pg. 31
  3. FLR 10-K 2009 Item 7 Pg. 32
  4. FLR 10-K 2009 Item 7 Pg. 35
  5. FLR 10-K 2009 Item 7 Pg. 36
  6. FLR 10-K 2009 Item 7 Pg. 34
  7. The Economist: A large black cloud
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki