Post on 30-Jan-2018
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Fluor CorporationInvestor Overview
Second Quarter 2014
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Safe Harbor Statement
Any forward-looking statements (including without limitation statements to the effect
that the company or its management “believes,” “expects,” “anticipates,” “plans,” or
other similar expressions) made in this presentation are based on current management
expectations as to what may occur in the future. However, the company’s actual results
for future fiscal periods and any corporate developments will depend on a number of
economic, competitive and other factors including some of which will be outside the
control of the company. Such factors could cause the company’s actual results for future
periods to differ materially from those expressed in any forward-looking statements
made in this presentation. Information concerning those factors is available in our Form
10-K filed on February 18, 2014 and Form 10-Q filed on July 31, 2014.
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Fluor Profile
A leading Engineering, Procurement, Construction and Maintenance Services (EPCM) company
Long term global presence and mega-project experience
Diversified across energy, industrial and government markets
Strong Front-End Engineering and Design (FEED) capability
$2.7 billion in cash and marketable securities at quarter-end
New awards of $5.9 billion in 2Q; backlog of $40.3 billion
Quarterly dividend $0.21 per share
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Global Business Segments
Oil & GasUpstream, Downstream, Petrochemicals
Industrial & InfrastructureMining, Infrastructure, Manufacturing,
Life Sciences, Operations & Maintenance
PowerGas, Coal, Nuclear, Renewables
Global ServicesAMECO, TRS, Fabrication, Construction,
Supply Chain
GovernmentU.S. Agencies
60%
23%13%
4%
28%
54%
11% 3%4%
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New Awards & Backlog
$40.8
$38.2 $37.5 $37.0 $36.5 $34.9
$40.2 $40.3
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Backlog
$6.3
$5.1
$6.5
$7.2
$5.6 $5.8
$10.7
$5.9
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
New Awards $ in Billions
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Backlog ̶ $40.3 Billion
80% 20%
34%
30%31%
5%
United States
The Americas
Reimbursable
Fixed Price
Europe, Africa, and Middle East
Asia Pacific
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Second Quarter 2014 Financial Performance
($ in millions, except EPS) 6/30/2013 6/30/2014
Revenue $ 7,190 $ 5,252Segment Profit 288 313Net Earnings * 161 163EPS (diluted) 0.98 1.02New Awards 7,194 5,863
Backlog $ 37,049 $ 40,328
Quarter Ended
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* Net earnings attributable to Fluor from continuing operations
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Key Financial Statistics
($ in millions, except EPS) 6/30/2013 6/30/2014
Cash and Marketable Securities $ 2,596 $ 2,675
Debt to Total Capital 13% 13%
Quarterly Dividend per Share $ 0.16 $ 0.21
Return on Equity 13% 18%
Quarter Ended
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$1.98
$3.40
$2.71
$4.06
$4.10 - $4.45
2010 2011 2012 2013 2014 (est)
Earnings Per Share
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Government
Serving Departments of Energy, Defense and Homeland Security
Long-term contracts at DOE’s Savannah River and Portsmouth sites
New awards in 2Q included Magnox nuclear decommissioning contract in U.K. and LOGCAP IV task order awards
Selected as preferred bidder for Paducah Deactivation and Shutdown contract
2011 2012 2013 2014 YTD
$3.4 $3.3$2.7
$1.2
Revenue ($ in Billions)
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Global Services
Segment includes:
Equipment
Staffing
Global procurement
Construction
Fabrication
Fabrication partnerships in the Philippines, Mexico and Canada
2011 2012 2013 2014 YTD
$573$680 $662
$288
Revenue ($ in Millions)
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Industrial & Infrastructure
2Q New awards included EPCM of a large manufacturing facility in U.S.
Limited opportunity in Infrastructure
Fluor consortium was recently selected as the preferred bidder for A9 PPP-financed highway project in the Netherlands
Continues to be a lack of significant prospects and awards in Mining and Metals
2011 2012 2013 2Q 2014
$21.5
$17.2
$10.5 $9.2
Backlog ($ in Billions)
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Power
Backlog consists of solar and gas-fired projects
Executed a cooperative agreement with DOE on cost-sharing structure for NuScale funding
Continuing to bid for new gas-fired opportunities this year in North America
Expect prospects to improve in 2015
2011 2012 2013 2Q 2014
$1.8 $1.9 $2.0$1.7
Backlog ($ in Billions)
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Oil & Gas
2Q new awards of $1.5 billion included
Delayed coking unit for a refinery in Belgium
Additional work on Santos in Australia
EPCM for a reverse osmosis project in Saudi Arabia
LNG break bulk facility in The Netherlands
Backlog currently $24.2 billion, up 29 percent from a year ago
Strong prospect list in U.S., Canada, Mexico, the Middle East and Asia
Expect a number of FEED programs to convert to EPC awards in 2014 and 2015
2011 2012 2013 2Q 2014
$15.1$18.2
$20.0$24.2
Backlog ($ in Billions)
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Fluor Summary
New awards: $5.9 billion in 2Q
Prospects and FEED activity remain strong
Strong growth in Oil & Gas segment
Profit up 57 percent y-o-y
Large prospects including upstream, downstream, petrochemical and LNG
Backlog $40.3 billion
2014 EPS guidance maintained at $4.10 ‒ $4.45
$2.7 billion in Cash & Marketable Securities
Share buybacks of $132 million in 2Q
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