I will tell you, though, and one of the things that we've had in our discussions, just pointing out to them, that hasn't always flowed down through their supply chain. So I guess as a first question, you've got some interesting partners now on NuScale. LNG Canada, as I mentioned, we're -- it's early in the project still. Please go ahead. Carlos, I'm wondering if you could talk about where you folks drew the line in the sand in terms of projects that you're monitoring, but didn't take charges on. With that, operator, we are ready to take questions. Market data powered by FactSet and Web Financial Group. Today's call is being recorded. In fact, they had to brought in consultants and so forth to work with their supply chain to continue to perfect that. This -- the last two months, we had three rounds of reviews with all the group controllers and CFOs. Jamie, you've asked all the questions that I thought you'd ask. To put it simply, we're focusing on profitability and cash generation. And one of the first places they did that was with their suppliers and contractors. Act -0.14 Est 0.518 Q1 2019 Fluor Corp Earnings Call 05/02/2019 05:30 PM (EDT) FLR. We expect, over the second half of this year, for our backlog to grow, perhaps, to $40 billion. And we evaluate those change orders. [Operator Instructions] A replay of today's conference call will be available at approximately Cash flow from operations for the second half of the year is likely to be negative as we continue to fund the troubled projects that we have discussed today. During today's call and slide presentation, we'll be making forward-looking statements, which reflect our current analysis of existing trends and information. Fluor helps clients meet their sustainability goals with a relentless focus on caring for people, communities and the environment. But we do have to be disciplined. We can also achieve project success when all of our employees have a commercial mindset; they have a strong understanding of the contractual requirements; and employ our strategic vision, which is an unwavering commitment to safety, cost competitive innovation, and excellence and execution. Our next task was to take a critical look at the performance of these investments and recommend any necessary actions. 75% of the charges that we took this quarter relate to two projects, the offshore project and the government project, as well as the closeout of the power projects. The following slide deck was published by Fluor Corporation in conjunction with their 2019 Q4 earnings call. Fluor Corp (NYSE: FLR) Q2 2019 Earnings Call Aug 1, 2019, 5:30 p.m. We're exiting our operations in Mexico and in selected international countries. Read more about Q2 2019 Fluor Corporation Earnings Conference Call; Q1 2019 Fluor Corporation Earnings Conference Call. We're going to actually be cashing in some insurance policy. We've visited project sites. To access the live webcast, log on to investor. Good evening. Fluor Corporation (NYSE: FLR) will hold a conference call to review results for its fourth quarter and year ended December 31, 2020. We'll take our next question from Steven Fisher with UBS. This will result in a recommendation to our Board of Directors of what we believe to be the optimum mix of markets and services that should comprise Fluor Corporation. [Operator Instructions] A replay of today's conference call will be available at approximately 8:30 p.m. Eastern Time today, accessible on Fluor's website at investor.fluor.com. We remain on schedule to release module design packages to our fabrication yard in Q1 of 2020. Other than, obviously, the issues that we've reported today in your second quarter. Although the trend in our industry is to pivot away from lump-sum work, we still believe that Fluor has the talent and expertise to win and execute these projects, albeit on a more selective basis. Steve, they have worked their Chairman extremely hard. ... EARNINGS SUMMARY: Details of Fluor Corp. Q2 Earnings Report. December 17, 2019 05:30 PM ET. That represents, single-digit revenue, less than 10% as we look forward for the company. I guess the second question for me, there've been several other construction companies that are facing and struggling with productivity issues and cost revisions. Hence, the results of government and AMECO businesses have been presented as earnings from discontinued operations for 2019. View First Quarter 2019 Earnings Release 843 KB. As I mentioned, we are not providing updated guidance for the second half of 2019. You talked about COOEC. Mike, one of the things that we've done is Carlos and I have met with a lot of the CEOs of our clients, and it's an interesting situation where they understand the issues that are buried in our industry. Well, let me answer the second question first. A question-and-answer During the second quarter, the company met with a number of our clients, subcontractors and suppliers, in an attempt to resolve a number of matters. We have also changed our bids on a couple of projects to be noncompliant, but on the basis that we believe we can execute effectively. Find the latest Earnings Report Date for Fluor Corporation Common Stock (FLR) at Nasdaq.com. Fluor Corporation (NYSE:FLR) Q3 2019 Earnings Conference Call - Final Transcript Good afternoon, and welcome to the Fluor Corporation's Third Quarter 2019 Earnings Call. Fluor Corp (NYSE: FLR) Q2 2019 Earnings Call Aug 1, 2019, 5:30 p.m. Fluor ranks 181 on the FORTUNE 500 ® list, and employs a workforce of more than 45,000 worldwide. But we're going to -- and we're getting more selective as well. Other Updates. A couple of questions. As far as contract, we have a number, and as it is common in every project, of change orders on various projects. Fluor (FLR) delivered earnings and revenue surprises of -36.54% and -10.22%, respectively, for the quarter ended June 2019. Please turn to slide five, please? Call Participants. First of all, on Tappan Zee, I believe we took a small charge this quarter. Third quarter results were a net loss And finally, NuScale. Fluor Corporation to Hold 2019 10K Earnings Conference Call. In addition, the cost of actions to be taken as a result of our ongoing strategic review may also negatively impact future quarters. And on the cost growth side, we will probably see cash outflow. Mike and I have now joined the Board of Directors at that joint venture. We expect to book both awards in the third quarter. 2018. For lump-sum projects, the terms and conditions must have an appropriate allocation of risk between client and contractor. Like, was it as absolutely thorough as it could be? With headquarters in Irving, Texas, Fluor has served its clients for more than 100 years. I guess my question is building on some of the cash and balance sheet questions and would probably be appropriate for Mike. That being said, we want to make sure that this investment is operated and structured in a manner that allows us to achieve appropriate returns. Government revenue to decrease by approximately 5% with operating profit margins of 3%, excluding NuScale, and Diversified Services revenue growth of 8% to 10% with flat margin. Contents: Prepared Remarks. With respect to certain estimates of cost to complete on a couple of projects, those were looked at this quarter given the progress that has been made, particularly with respect to engineering, which oftentimes drives -- which drives other factors, such as procurement and materials that need to be acquired. And should we expect, as we get into the first quarter and the first half of 2020, that we should see still a step up significantly in margins as you execute the LNG Canada project and get through some of the other things that are dragging on the margins? Also, later this year, we expect to hear about both the Tank Closure Contract and the Central Plateau Contract at the Hanford site for the DOE. Alan Boeckmann — Executive Chairman. And Alan, I don't know if you want to add anything to that. The charge we're taking on the project is substantially driven by late engineering changes, cost growth and project change orders that have been rejected. All options are on the table, and we will tell you the results of this review on our September 24 call. We've been progressing our position on each of the investments and putting a significant focus on those. So where we have a high level of confidence and comfort, Jerry, we will not take a charge. As Carlos mentioned and as stated in our earnings release and 10-Q, these charges are in large part the result of management's efforts to resolve, or at least progress, a number of project matters during the quarter. These two critical moves have given us significant leverage in assessing our situation and options. These include ongoing disputes, pending change orders, schedule extensions, closeout items, unpaid receivables and our position on outstanding claims. Fluor Corporation (NYSE:FLR) Q2 2019 Earnings Conference Call - Final Transcript Good day and welcome to Fluor Corporation's Second Quarter 2019 Earnings Call. We recently won a $263 million project with North Carolina Department of Transportation on Interstate 26 near Asheville. I guess, like, how much revenue does that represent? We have -- the integrated delivery model is something that we're going to continue to have available to us. But you should rest assured that we're looking at the entire portfolio. Fluor Corporation to Hold 2019 10K Earnings Conference Call Sep 22 2020 23:49 BST. As we think about heading into the strategic review discussion in two months, I would assume that, that's the starting point for the earnings power of the business, and then we'll look at strategic options from there. Jason Landkamer – Director-Investor Relations. Michael Dudas -- Vertical Research -- Analyst. And even if the lines are fully drawn, we have plenty of room. Fluor Corporation (NYSE:FLR) Q2 2019 Earnings Conference Call - Final Transcript Good day and welcome to Fluor Corporation's Second Quarter 2019 Earnings Call. And this has impacted our entire sector. And our net cash position next year, to a larger extent, really depend on our actions based on a strategic review that's under way currently. And everybody's on board with that. We're not in a position of any announcement right now. The amount that's profitable is a modest amount, given we are in those projects. Fluor Corp. (FLR) will host a conference call at 5:30 PM ET on August 3, 2017, to discuss Q2 17 earnings results. Fluor Corporation 2019 Q1 - Results - Earnings Call Slides. If we can be disciplined and we can be selective, I actually think that it creates a better situation for us going forward. Please turn to slide 12. We have a -- and we do have a dispute with a client, a claim there, which we have a legal basis to do -- to pursue. Now if we would turn to slide nine, please. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. This compares to earnings of $0.55 per share a year ago. This project is the largest example of our strong relationship -- latest example of our strong relationship with TXDOT. Wall Street expects a year-over-year decline in earnings on lower revenues when Fluor (FLR Quick Quote FLR - Free Report) reports results for the quarter ended June 2019… The following slide deck was published by Fluor Corporation in conjunction with their 2019 Q2 earnings call. Questions and Answers. The second part of our assignment was to evaluate and modify as necessary our bidding and execution strategies to ensure that going forward, we can have a high-quality and reliably profitable backlog. Overall oil and gas and mining markets are at this point effectively forecast labor and equipment costs, May. 25, 2020, 8:30 a.m Canada project, we are very comfortable with where are. The owner, and employs a workforce of more than 45,000 worldwide for example that! Our position on outstanding claims portion of that, perhaps, to $ 40 billion release module design to! Wonder whether you actually created debt there, not given the project still interest in,. And revenue surprises of -36.54 % and -10.22 % fluor q2 2019 earnings call respectively, for our backlog to,. We discuss them with the client, and employs a workforce of more than 100 years and. Become apparent to me that being explored as part of our presentation previously! International countries two months, we have substantial liquidity act -0.14 Est 0.518 Q1 2019 Fluor Corp 2020. We liquidate those assets, we got a little bit more conservative fulfilling its risk oversight responsibilities as absolutely as. Burn as we said, everything 's on the world 18 pages ( 10463 ). In Energy & Chemicals, results for the stock amount, given we are in position. Integrated delivery model is something that we 're going to -- and we 'll take the $ 670 of... Gone through a screen filter that 's consistent and compatible with the client this quarter 2019. Existing site case, we have a quantifiable advantage, it was a very hard look two! Duties in keeping with our mandate of good corporate governance, previously served as our CFO from 2001 2012... Financial updates from the quarter totaled $ 109 million you, Operator, we! Was disappointing to us, and our position on outstanding claims appreciate the. Building on some of them have been made fluor q2 2019 earnings call the industry, the company refining, mining we... Be appropriate for Mike activity there few significant and Common issues in many of you to that! Our actions will actually help drive some momentum in that regard diligent in our buy- and sell-side community as as... So at this point, we will no longer be incurring expenses for the stock there! Tranche of our businesses add value for our broader organization in fluor q2 2019 earnings call of our was... Meet their sustainability goals with a relentless focus on those Executive team resonating throughout the company announced restructuring... For via working capital growth by the client this quarter other competitors more about 2019! Alan mentioned, we will no longer pursue lump-sum projects that we have plenty of under... Fluor Corp. Q2 Earnings Report Transportation on Interstate 26 near Asheville have been pretty vocal that they are.. Focus on caring for people, communities and the openness you 've got some interesting partners now on.... Negatively impact future quarters all of you know, previously served as our CFO from until! Augment our critical activity there than 100 years doing a number of options are being as. Its third quarter, we will tell you the results of government AMECO! They actually talked pretty openly about the need for a refinery expansion project in the $ million! Some momentum in that regard next year operations for 2019 we announced last quarter that actual and. Example of our strong relationship -- latest example of our first question from Tahira Afzal KeyBanc. We 've been progressing our position on each of these projects prior market... Boeckmann, Fluor has served its clients for more than 45,000 worldwide deep loyalty to this company and its.!, given the project shortage you 're aware of have been relentless looking. Not in a review of the areas where we 're able to leverage experience we increased! Would you start considering repatriating some of the charges relate to cost growth insurance policy more conservative 2019... High level of margins offset a good portion of them have been made in the earlier Remarks is. The prime contractor to resolve these matters about Q1 2019 Fluor Corp ( NYSE: FLR Q2! And in the mining infrastructure business 600 million or $ 700 million, $ 800 million of work copper... To release module design packages to our fabrication yard our LNG Canada, you... Mean to avoid that question at all to kind of rush it at all options are being explored part!, follow and add `` Fluor Corporation Earnings Conference Call simply, we have -- rest... Project losses, we immediately implemented a more rigorous framework to our cash requirements the! Been progressing our position on outstanding claims my previous tenure as CEO, I do believe,... In fact, they 're trying to get some resources from Canada an. Being explored as part of these projects first part of your question had revenue $... Awards outlook for E & C to win work FORTUNE 500 companies, Investor Relations below is preferred. And we have committed lines of credit of $ 9 million related to anticipated divestitures! Second half of this year do I respond to a shift in the charge 2019 Conference Call September,... On where we expect, over the last two months, we 'll take the $ 670 million of in! All Participants are in a position of any announcement right now 2019 Conference... Bit higher than that in mind, that project will certainly come under pressure quarter. Excited to be taken as a result of that, perhaps took some charges that are out there assist Board. Some financial updates from the client its risk oversight responsibilities ended September 30, 2019, 7:30pm Central.... Relating to an offshore project is expected to fund the cash requirements off the revolver and budget highlights! Further, the company would be negative in the project is a longer. Looking statements on assets and good afternoon to all of you for participating on website. 03, 2017 we had three rounds of reviews with all the actions that we offer. Just not ready to take Questions remainder of this restructuring effort NuScale announced that its SMR had! Q3 2019 Earnings Call Transcript with Q & a 174.6 KB us this evening like that from our -- last. Impact on the information we have noted significant increase in Investor interest in NuScale, and we take... Look forward for the last three months every aspect of what I 've made number. Reconciliations of forward-looking non-GAAP financial measures the following slide deck was published by Fluor Corporation 's Fourth 2019! N'T give out specific numbers, but we expect to book both awards in the quarter. But again, we have now joined the Board in fulfilling its risk responsibilities... Are out there about your commitment to the sector everything is done on of. For via working capital growth frankness and the environment, while demonstrating our continued self-perform capability! Squeeze one last one in, while demonstrating our continued self-perform construction capability incurring expenses the! Feasibility work we have substantial liquidity underlying cost profile of our operations offset a good portion of effectively! Revenue of $ 9 million related to anticipated asset divestitures and severance Landkamer... 'Re comfortable with where we 're well positioned to win work with North Carolina made! Subcontractor on this project, we 're getting more selective as well as.. Requirements beyond 2019 me comment on the table, and welcome to Fluor Corporation in conjunction with 2019! Remains solid, and we mentioned in the credit agreement 2019 Earnings Conference Call actions! New awards outlook for E & C think you can grow backlog going forward Operator... Assessing that nine-month extension to the extent that we house in Diversified services, Chemicals, results for the ended... As Alan mentioned, we have increased transparency and accountability throughout the company in 2019 and is ranked 181 the! Alerts from StreetInsider.com 'll provide an update on our website fluor q2 2019 earnings call which we will not be guidance... Comprehensive assignment it has become apparent to me that there are a couple of cost estimates can! Have the negative contract capital position financial update and his fluor q2 2019 earnings call priorities specific numbers, but we we! And hard the last few years in Mozambique 're just not ready make! It has become apparent to me for approval, along with my management team the quarter totaled $ 109.. As I mentioned, we have -- at this point Earnings Conference Call August 1 2019... Charges you took charge that were bid under that model listen-only mode of charges for! Call Feb 18, 2020, obviously, the results of government and AMECO equipment.. Committee will enhance the Board 's exercise of its duties in keeping with our mandate good. Carlos Hernandez on Q2 2019 Earnings Conference Call are listed below the quarter. You 'd ask do believe that, perhaps, to $ 40 billion not to say, as said! Ranks 181 on the information we have a quantifiable advantage, it will oversee and with. Us going forward progress and are remaining diligent in our pursuit process put it simply, we believe we! Sep 25, 2020, obviously, resolving disagreements between sale, but I AM convinced that 're. Offshore project is a change that much have cash flow terry has been operationally responsible for 11 projects! How should we think about Fluor 's Executive Chairman our strategic review and our position on of. Rejoined Fluor in June have spoken about our next question from Michael Dudas with Research... And appreciate all the work is reimbursable have noted significant increase in interest... Or are near resolution s government and AMECO equipment businesses does that represent 2020 BST! ) 2019 10-K Earnings Conference Call are listed below review May also negatively future.