Fluor Corporation (FLR) has reported 97.20 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4.80 million, or $0.03 a share in the quarter, compared with $171.30 million, or $1.17 a share for the same period last year. Revenue during the quarter grew 8.72 percent to $4,766.90 million from $4,384.60 million in the previous year period. Gross margin for the quarter contracted 494 basis points over the previous year period to 0.78 percent. Total expenses were 99.79 percent of quarterly revenues, up from 93.53 percent for the same period last year. That has resulted in a contraction of 626 basis points in operating margin to 0.21 percent.
Operating income for the quarter was $10.10 million, compared with $283.80 million in the previous year period.
“We are very disappointed in the construction progress on a fixed-price Gulf Coast project that led to a significant charge this quarter,” said David Seaton, Fluor chairman and chief executive officer. “Looking ahead to 2017, we remain focused on project execution and continuing to capture key prospects as they develop across our businesses.”
For financial year 2016, the company projects diluted earnings per share to be in the range of $2.20 to $2.40.
Operating cash flow declines
Fluor Corporation has generated cash of $452.50 million from operating activities during the nine month period, down 20.67 percent or $117.90 million, when compared with the last year period. The company has spent $716.80 million cash to meet investing activities during the nine month period as against cash outgo of $170.20 million in the last year period. It has incurred net capital expenditure of $104.70 million on net basis during the nine month period, down 5.42 percent or $6 million from year ago period.
Cash flow from financing activities was $97.80 million for the nine month period as against cash outgo of $534.20 million in the last year period.
Working capital declines
Fluor Corporation has witnessed a decline in the working capital over the last year. It stood at $1,865.40 million as at Sep. 30, 2016, down 21.22 percent or $502.56 million from $2,367.96 million on Sep. 30, 2015. Current ratio was at 1.48 as on Sep. 30, 2016, down from 1.83 on Sep. 30, 2015.
Days sales outstanding went down to 12 days for the quarter compared with 26 days for the same period last year.
Debt increases substantially
Fluor Corporation has witnessed an increase in total debt over the last one year. It stood at $1,689.20 million as on Sep. 30, 2016, up 70.16 percent or $696.51 million from $992.69 million on Sep. 30, 2015. Short-term debt stood at $133.70 million as on Sep. 30, 2016. Total debt was 18.13 percent of total assets as on Sep. 30, 2016, compared with 13.06 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 0.79 for the quarter from 50.68 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
