Fluor Corp. Reports Operating Results (10-Q)
Fluor Corporation (new) has a market cap of $8.55 billion; its shares were traded at around $49.7 with a P/E ratio of 14.3 and P/S ratio of 0.4. The dividend yield of Fluor Corporation (new) stocks is 1.3%. Fluor Corporation (new) had an annual average earning growth of 16.9% over the past 10 years. GuruFocus rated Fluor Corporation (new) the business predictability rank of 4.5-star.
Highlight of Business Operations:Consolidated revenue for the three months ended June 30, 2012 increased 18 percent to $7.1 billion from $6.0 billion for the three months ended June 30, 2011. Consolidated revenue for the six months ended June 30, 2012 increased 21 percent to $13.4 billion from $11.1 billion for the first half of the prior year. The revenue increases in the current year periods were principally due to substantial growth in the mining and metals business line of the Industrial & Infrastructure segment, as well as revenue growth in the Oil & Gas segment.
Net earnings attributable to Fluor Corporation were $161 million, or $0.95 per diluted share, and $316 million, or $1.86 per diluted share, for the three and six months ended June 30, 2012, compared to net earnings attributable to Fluor Corporation of $165 million, or $0.94 per diluted share, and $305 million, or $1.72 per diluted share, for the corresponding periods of 2011. In the 2012 periods, there was improved performance in the Industrial & Infrastructure, Oil & Gas, Global Services and Government segments, offset by lower earnings in the Power segment.
Cash and cash equivalents were $1.8 billion as of June 30, 2012 compared to $2.2 billion as of December 31, 2011. Cash and cash equivalents combined with current and noncurrent marketable securities were $2.5 billion and $2.8 billion as of June 30, 2012 and December 31, 2011, respectively. Cash and cash equivalents are held in numerous accounts throughout the world to fund the companys global project execution activities. As of June 30, 2012 and December 31, 2011, cash and cash equivalents held outside the United States amounted to $1.3 billion and $1.5 billion, respectively. The company did not consider any cash to be permanently reinvested overseas as of June 30, 2012 and December 31, 2011 and, as a result, has accrued the U.S. deferred tax liability on foreign earnings, as appropriate.
Cash utilized by investing activities amounted to $230 million and $192 million for the six months ended June 30, 2012 and 2011, respectively. The primary investing activities included purchases, sales and maturities of marketable securities, capital expenditures and disposals of property, plant and equipment.
The company holds cash in bank deposits and marketable securities which are governed by the companys investment policy. This policy focuses on, in order of priority, the preservation of capital, maintenance of liquidity and maximization of yield. These investments include money market funds which invest in U.S. Government-related securities, bank deposits placed with highly-rated financial institutions, repurchase agreements that are fully collateralized by U.S. Government-related securities, high-grade commercial paper and high quality short-term and medium-term fixed income securities. During the six months ended June 30, 2012 and 2011, purchases of marketable securities exceeded proceeds from sales and maturities of such securities by $152 million and $72 million, respectively. The company held current and noncurrent marketable securities of $746 million and $600 million as of June 30, 2012 and December 31, 2011, respectively.
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