Fluor Corp. missed its mark for second-quarter earnings Thursday, posting a profit of $102 million, or 72 cents a share, down almost 30 percent from a year ago on a pair of underperforming projects unrelated to the company’s nuclear decommissioning work for the Energy Department.
Revenue in the three months ended June 30 was $4.9 billion, up about 2 percent from $4.8 billion a year ago. For the six months ended June 30, net income was about $240 million, down more than 25 percent compared with a year ago. Revenue for the six months was essentially flat year over year at $8.7 billion.
Contributing to revenue growth in the period ended June 30 was the start of the company’s work on the massive Idaho Cleanup Project Core Contract, and increased activity at the Paducah Gaseous Diffusion Plant in Kentucky and at the Savannah River Site in South Carolina. These revenue bumps were offset somewhat by ramped-down activity on a non-nuclear contract with the U.S. Army.
The company’s government, which includes the nuclear cleanup contracts, saw quarterly revenue rise almost 10 percent to just under $660 million, according to Fluor’s latest 10-Q filing with the U.S. Securities and Exchange Commission. Three of the company’s four operating segments posted revenue gains in the second quarter. Only the the Energy, Chemicals and Mining segment brought in less money than a year ago.
The company’s Fluor-BWXT Portsmouth joint venture in Ohio is under contract for decontamination and decommissioning work at DOE’s Portsmouth Site in Ohio, a former uranium enrichment facility. DOE earlier this year picked up an $870 million option that keeps the company on the job through Sept. 30, 2018.
The company’s Fluor Federal Services subsidiary holds a three-year, $465 million contract to deactivate the gaseous diffusion uranium enrichment plant at DOE’s Paducah Site in Kentucky, which went out of service in 2013. The deal runs out July 31, 2017.
Fluor, along with Stoller Newport News Nuclear and Honeywell, is also a partner in Savannah River Nuclear Solutions, which runs the Energy Department’s Savannah River Site near Aiken, S.C.
