Earnings fell at Fluor, Irving, Texas, in the third quarter, which the international engineering and construction company chalked up to a court ruling and the declining share price for Fluor-backed NuScale Power.
The biggest blow to earnings was an adverse court decision of $653 million in a completed infrastructure project in Australia, according to Fluor’s Nov. 7 press release. Fluor will also monetize its current stake in NuScale under an agreement announced this week with the small modular reactor company. Fluor will not use income from the NuScale move to pay off the legal penalty, company officials said during a Friday conference call with analysts.
Fluor net earnings for the third quarter ended Sept. 30 show a $697 million loss, which reflects a loss of $4.30 a share, down from net earnings of $54 million in the year-ago quarter.
Quarterly revenue was $3.4 billion, down year-over-year from $4 billion.
Quarterly segment operating income for Mission Solutions, the business line that includes DOE and other government contracting, was $34 million, down from $45 million a year ago. Segment revenue was $761 million up from $635 million in the year-ago period.
“New awards included a six-year contract to extend Fluor’s presence at the Portsmouth project in Ohio,” Fluor said in the press release. It was a reference to Fluor’s role as a junior partner in the Southern Ohio Cleanup Co. environmental contract at Portsmouth.
Mission Solutions results also reflect “the favorable resolution on a longstanding claim on a completed weapons project,” according to the Fluor press release.
“Fluor’s third quarter results demonstrate our commitment to disciplined project delivery and creating value for our clients and shareholders,” said Fluor CEO Jim Breuer. “Despite continued short term uncertainty in some markets, we are well positioned with unmatched global engineering and construction expertise, disciplined execution, a predominantly reimbursable portfolio, and a clear capital allocation strategy.”
Fluor is a major contractor in the Department of Energy’s nuclear complex. It is the lead partner in Savannah River Nuclear Solutions, the management and operations contractor for DOE’s Savannah River Site in South Carolina.