Fluor Corporation has announced financial results for its third quarter ended Sept. 30, 2018. Earnings attributable to Fluor for the third quarter were $77 million, or $0.55 per diluted share, compared to $94 million, or $0.67 per diluted share a year ago. The effective tax rate for the quarter was 34 percent, due to the company being unable to recognize tax benefits on certain foreign charges. Consolidated segment profit for the quarter was $207 million, compared to $203 million a year ago. Third quarter revenue was $4.7 billion compared to $4.9 billion in the prior year.
New awards for the quarter were $9.6 billion, including $5.4 billion in Mining, Industrial, Infrastructure & Power, $3.3 billion in Government, $644 million in Energy & Chemicals and $336 million in Diversified Services. Consolidated ending backlog was $34.9 billion, up from $32.9 billion a year ago.
"Our significant increase in new awards for the quarter is attributable to the improvements in the energy and commodity markets as well as our success in infrastructure and government," said David Seaton, Fluor chairman and chief executive officer. "We believe our transformation to a data driven, predictive analytics platform, combined with our fabrication capacity and craft labor workforce, can improve cost and schedule certainty for clients and stakeholders."
Corporate G&A expense for the third quarter of 2018 was $65 million, compared to $46 million a year ago. Expenses for the quarter include $21 million related to UK pension settlement expenses and foreign currency exchange fluctuations. Fluor's cash and marketable securities balance at the end of the third quarter was $1.9 billion.
Outlook
The company anticipates earnings for 2018 of $1.80 to $1.90 per diluted share, excluding any impact of foreign exchange fluctuations or UK pension settlement expenses.
Business Segments
Fluor's Energy & Chemicals segment reported segment profit of $50 million, compared to $100 million in the third quarter of 2017. Results for the quarter include a pre-tax charge of $46 million for forecast revisions on a downstream project. Revenue for the segment was $1.9 billion compared to $2.2 billion a year ago. New awards for the segment totaled $644 million and ending backlog was $11.4 billion compared to $16.5 billion a year ago.
The Mining, Industrial, Infrastructure & Power segment reported a segment profit of $101 million, compared to $37 million in the third quarter of 2017. Results for the quarter include a pre-tax charge of $35 million for forecast revisions on a gas-fired power project and a $125 million pre-tax benefit related to the company's sale of its Seagreen offshore investment. Revenue for the segment was $1.4 billion compared to $1.3 billion a year ago. New awards in the third quarter were $5.4 billion, including a copper mine in Peru and an international bridge project in Canada. Ending backlog for the segment was $16.5 billion, compared to $10.1 billion a year ago.
The Government segment reported segment profit of $32 million, compared to $30 million a year ago. Revenue for the quarter was $781 million, compared to $766 million a year ago. Third quarter new awards of $3.3 billion include contract extensions for the Strategic Petroleum Reserve, Portsmouth and Savannah River projects. Ending backlog was $5.1 billion compared to $3.6 billion a year ago.
The Diversified Services segment reported segment profit of $24 million in the third quarter of 2018, compared to $35 million a year ago. Revenue for the quarter was $588 million compared to $624 million in the third quarter of 2017. New awards totaled $336 million for the quarter, and ending backlog was $2.0 billion compared to $2.7 billion a year ago.
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