Fluor profit drops
By Helen Wright24 February 2011
US contractor Fluor's industrial and infrastructure division dragged on its full-year 2010 results as revenues fell and additional expenses were incurred from a wind farm project.
The industrial and infrastructure unit reported a loss of US$ 170 million, compared with net profit of US$ 140 million in 2009. Fluor said the turnaround was mainly down to US$ 343 million expenses incurred on the Greater Gabbard Offshore Wind Farm project in the North Sea.
CEO David Seaton said the company had experienced "substantial challenges" on the project including weather-related delays and the bankruptcy of a major subcontractor, resulting in costs spiralling over target.
Despite this, total revenue for the segment rose +42% to US$ 6.9 billion in 2010, fuelled by increases in mining and metals project volume.
And the industrial and infrastructure unit also reported a +83% increase in new awards during 2010 to $12.5 billion, while year-end order backlog rose to US$ 16.9 billion, representing a +65% increase over 2009.
Overall, Fluor's net revenue declined -5% to US$ 20.8 billion last year, while total annual profits fell to US$ 621 million from US$ 1.3 billion in the prior year.
But Mr Seaton was upbeat on prospects for 2011, describing the company as "well positioned for growth".