Fluor, a major Energy Department contractor, on Thursday reported a drop in revenue but higher earnings for 2018.
The Dallas-area company took in $225 million in earnings attributable to Fluor, $1.59 per diluted share, for the 12 months ended Dec. 31. That was up from roughly $191 million, or $1.36 per diluted share, for 2017, according to its full-year and fourth-quarter earnings report.
Fluor recorded $19.2 billion in sales for 2018, down from $19.5 billion the prior year. Its consolidated profit across its business segments was $602 million, up from $545 million on a year-over-year basis.
Fluor’s government segment, which includes its contracts within the Energy Department’s weapons complex, showed about $3.8 billion in revenue for the year compared to $3.2 billion for 2017. The government sector’s profit was about $179 million, up from $128 million in 2017.
“We are well-positioned for multiyear DOE contracts, including participation in the DOE National Laboratory complex and significant ongoing support of various department of defense needs,” Fluor Chairman and CEO David Seaton said during a Thursday earnings call with Wall Street analysts.
Seaton noted that joint venture Fluor-BWXT Portsmouth in September landed its second and final 30-month contract extension from DOE for demolition and disposal at the Portsmouth Site in Ohio. The company is now in the final leg of its 10-year contract, which is worth $3. 7 billion
Fluor’s revenue for the fourth quarter, ended Dec.31, was $4.8 billion, down from $5 billion in the fourth quarter of 2017.
Earnings attributable to Fluor for the quarter were $50 million or $0.36 per diluted share, down from $60 million, or $0.43 per diluted share, from the fourth quarter of 2017. Fluor’s quarterly and annual earnings were hurt by a valuation allowance on deferred tax assets.
Fluor’s segment profit for the quarter was $149 million, down from $195 million in the same period of 2017.
Government services revenue for the quarter was $801 million, down from $957 million one year earlier. The government sector showed an operating profit of $23 million, down from $49 million in the final quarter of 2017.
Fluor currently expects its earnings per share for 2019 within a range of $2.50 to $3 per diluted share.
Fluor is also the lead partner in the Savannah River Nuclear Solutions venture, which operates the Savannah River Site in South Carolina. The company is also in charge of cleanup at the DOE’s Idaho National Laboratory. A Fluor-led team is one of three vendors still hoping to win reissuance of a 10-year liquid waste management contract at SRS.
