FLUOR CORPORATION
FACT BOOK
SIX MONTHS ENDED
April 30, 1999
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For information write to:
Lila Churney
Vice President, Investor Relations
Fluor Corporation
One Enterprise Drive
Aliso Viejo, California 92656-2606
or
Telephone: (949) 349-3909
Editor: Tammy Trenkmann
Manager, Investor Relations
(949) 349-3984
CONTENTS
Financial Results and Operating Statistics
Highlights ................................................................................................... 2
Selected Graphs ........................................................................................ 3
Condensed Consolidated Statement of Earnings ...................................... 4
Condensed Consolidated Balance Sheet .................................................. 6
Condensed Consolidated Statement of Cash Flows ................................. 8
Eleven-Year Financial Summary ............................................................. 10
Statistical Highlights................................................................................. 12
Consolidated Quarterly Backlog and New Awards .................................. 14
Update of Operations
Strategic Business Enterprise Financial Review ...................................... 16
Fluor Corporate Organizational Chart ...................................................... 17
Contract Announcements ......................................................................... 18
Significant Corporate News Releases ...................................................... 23
Company Description:
Fluor Corporation (NYSE:FLR) conducts business on a global basis in the
fields of engineering, procurement and construction, global services and
coal production.
1
HIGHLIGHTS
(dollars in millions, except per share data)
Three Months Ended April 30 1999 1998 % Change
Revenues $ 3,091.3 $ 3,282.1 (6%)
Net (Loss) Earnings (72.9) * 54.3 NM
Diluted (Loss) Earnings Per Share (0.97) * 0.67 NM
New Awards $ 1,621.1 $ 2,776.6 (42%)
New Awards Gross Margin 7.6% 5.9% 29%
Backlog $ 10,222.5 $ 13,914.0 (27%)
Backlog Gross Margin 5.0% 3.9% 28%
Cash Dividend Per Share $ 0.20 $ 0.20 --
Work Performed $ 2,601.8 $ 2,807.4 (7%)
Return on Average Shareholders’ Equity* 6.9% 15.7% (56%)
*Based on trailing 12 months
Six Months Ended April 30 1999 1998 % Change
Revenues $ 6,475.4 $ 6,681.1 (3%)
Net (Loss) Earnings (21.8) * 109.1 NM
Diluted (Loss) Earnings Per Share (0.29) * 1.33 NM
New Awards $ 3,322.0 $ 5,378.7 (38%)
New Awards Gross Margin 8.1% 6.0% 35%
Backlog $ 10,222.5 $ 13,914.0 (27%)
Work Performed 5,492.0 5,763.9 (5%)
Cash Dividend Per Share $ 0.40 $ 0.40 --
Backlog by Industry and Geographic Region April 30, 1999
Process $ 4,141 41%
Industrial 3,755 37%
Power/Government 1,166 11%
Diversified Services 1,161 11%
Total Backlog $ 10,223 100%
United States $ 4,795 47%
Asia Pacific 1,248 12%
Americas 2,593 25%
Europe/Africa/Middle East 1,587 16%
Total Backlog $ 10,223 100%
Key Financial Statistics April 30, 1999 October 31, 1998
Working Capital $ (272.0) $ (218.4)
Cash and Short-term Investments $ 207.9 $ 340.5
Total Short-Term Debt 416.0 428.5
Total Long-Term Debt 300.0 300.6
Total debt $ 716.0 $ 729.1
Total Debt to Capitalization 33% 32%
Shareholders’ Equity $ 1,480.7 $ 1,525.6
Shareholders’ Equity Per Share 19.54 20.19
Closing Stock Price 33 3/8 $ 38 13/16
NM=Not Meaningful.
* Includes a $136.5 special provision for strategic reorganization.
2
SELECTED GRAPHS
Earnings from Continuing Operations Closing Stock Price
(dollars in millions) (in dollars)
6 5 1/ 2
268
232 235 56 1/ 2
4 9 1/ 2
192 4 5 5/ 8 4 4 5/ 8
167 40 3/4 4 1 1/ 8
3 8 13 / 16
153 146*
135 32 3/8 33 3/8
119 28 3/4
84 19 5/ 8
39
88 89 90 91 92 93 94 95 96 97 98 88 89 90 91 92 93 94 95 96 97 98 99*
Shaded portion excludes nonrecurring *April 30, 1999
*Includes project and cost reduction provisions
Cash Dividends Total Return
(dollars) Fluor vs. S&P 500
.80
.76
.68 600
.60
.52
.48 400
Dollars
.40
.32
.24 200
.14
.02 0
87 89 91 93 95 97 99*
88* 89 90 91 92 93 94 95 96 97 98
*Dividends were resumed in the fourth quarter of 1988 Fluor S&P
at $0.02 per share following a suspension which *Six months ended April 30, 1999.
began in the second quarter of 1987.
3
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Description 1999* 1998*
( $ in t ho us a nds e xc e pt pe r s ha re YT D Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1
a m o unt s ) 19 9 9 10 / 3 1 7/ 31 4/ 30 1/ 3 1 19 9 8 10 / 3 1 7/ 31 4/ 30 1/ 3 1
Revenues 6,475,372 3,091,307 3,384,065 13,504,773 3,294,823 3,528,852 3,282,079 3,399,019
Cost of Revenues 6,428,916 3,137,71 †
2 3,291,204 13,095,436 3,179,290 3,421,976 3,184,891 3,309,279
Corporate Administrative & General
Expense 19,780 10,222 9,558 22,598 8,261 3,774 0,1 5
1 1 448
Interest, Net 16,300 7,896 8,404 24,1 3
1 8,986 6,870 3,423 4,834
Total Costs & Expenses 6,464,996 3,155,830 3,309,166 1 42,1
3,1 47 3,196,537 3,432,620 3,198,429 3,314,561
Earnings (Loss) Before Taxes 10,376 (64,523) 74,899 362,626 98,286 96,232 83,650 84,458
Income Taxes 32,190 8,372 23,818 127,282 34,481 33,795 29,361 29,645
Net Earnings (Loss) ,81
(21 4) (72,895) 51,081 235,344 63,805 62,437 54,289 54,813
Net Earnings (Loss) Per Share
Diluted (0.29) (0.97) 0.68 2.97 0.84 0.81 0.67 0.66
Dividends-Common 0.40 0.20 0.20 0.80 0.20 0.20 0.20 0.20
Closing Stock Price 33 3/8 33 3/8 37 7/8 3/1
38 1 6 38 1 6
3/1 /1
42 1 6 47 1/4 1 6
37 1 /1
*Quarterly Data Unaudited
All EPS amounts have been calculated in accordance with FAS #128.
Cost of Revenues for 2Q99 includes a $136,500 special provision for strategic reorganization.
4
1997* 1996* 1995*
F/Y Q4 Q3 Q2 Q1 YT D Q4 Q3 Q2 Q1 F/Y Q4 Q3 Q2 Q1
1997 10/ 31 7/ 31 4/ 30 1/ 31 1996 10/ 31 7/ 31 4/ 30 1/ 31 199 5 10/ 31 7/ 31 4/ 30 1/ 31
14,298,541 4,002,742 3,675,905 3,185,833 3,434,061 1 5,1
1 ,01 92 3,327,728 2,702,821 2,582,229 2,402,414 9,301,384 2,575,614 2,436,831 2,229,313 2,059,626
14,022,570 3,868,300 3,567,314 3,259,669 3,327,287 10,565,449 3,194,973 2,589,959 2,477,175 2,303,342 8,910,076 2,465,525 2,335,885 2,133,971 1,974,695
13,230 (5,491) 4,654 3,197 10,870 48,120 13,567 9,956 1
1 ,334 13,263 48,636 13,786 12,793 12,451 9,606
7,472 3,926 1,893 1,374 279 1
(1 ,595) (2,319) (1,960) (3,362) (3,954) (19,542) (5,224) (6,426) (4,093) (3,799)
14,043,272 3,866,735 3,573,861 3,264,240 3,338,436 10,601,974 3,206,221 2,597,955 2,485,147 2,312,651 8,939,170 2,474,087 2,342,252 2,142,329 1,980,502
255,269 136,007 102,044 (78,407) 95,625 3,21
41 8 21
1 ,507 104,866 97,082 89,763 362,214 1 ,527
01 94,579 86,984 79,124
109,082 47,963 35,802 (8,273) 33,590 45,1
1 34 42,648 36,789 33,382 32,315 130,446 35,556 34,427 31,662 28,801
46,1
1 87 88,044 66,242 (70,134) 62,035 268,084 78,859 68,077 63,700 57,448 231,768 65,971 60,152 55,322 50,323
1.75 1.06 0.79 (0.84) 0.74 3.21 0.94 0.82 0.76 0.69 2.81 0.80 0.73 0.67 0.61
0.76 0.19 0.19 0.19 0.19 0.68 0.17 0.17 0.17 0.17 0.60 0.15 0.15 0.15 0.15
411/8 411/8 611/2 55 711/8 65 1/2 65 1/2 60 1/4 66 1/8 67 56 1/2 56 1/2 56 1/2 511/2 46 1/4
5
CONDENSED CONSOLIDATED BALANCE SHEET
1999 1998
Q4 Q3* Q2 * Q1* Q4 Q3* Q2 * Q1*
($ in thousands) 10/31 7/31 4/30 1/31 10/31 7/31 4/30 1/31
Assets
Current Assets
Cash and Cash Equivalents 207,871 308,248 340,544 308,727 319,491 305,413
Marketable Securities - - - - - -
Accounts and Notes Receivable 945,363 871,732 959,416 923,270 956,139 915,909
Contract Work in Progress 625,557 620,422 596,983 612,301 564,819 529,664
Net Assets of Discontinued Operations - - 36,300 - - -
Inventories and Other Current Assets 442,395 418,693 343,908 315,284 342,338 290,680
Total Current Assets 2,221,186 2,219,095 2,277,151 2,159,582 2,182,787 2,041,666
Property, Plant & Equipment, net 2,179,076 2,175,380 2,147,308 2,098,245 1,985,196 1,951,083
Goodwill, net 118,527 135,213 139,091 146,448 160,744 157,900
Investments 138,063 135,811 137,562 122,941 119,497 98,811
Other Assets 356,928 352,451 318,096 329,055 310,126 293,676
Total Assets 5,013,780 5,017,950 5,019,208 4,856,271 4,758,350 4,543,136
Liabilities and Shareholders’ Equity
Current Liabilities
Trade Accounts and Notes Payable 893,296 945,558 972,096 864,143 958,636 706,070
Commercial Paper & Loan Notes 374,048 378,164 428,458 323,832 99,763 49,871
Advanced Billings on Contracts 588,938 608,446 546,816 593,452 537,561 527,043
Other Accrued Liabilities 636,859 518,233 548,184 561,830 579,043 534,427
Total Current Liabilities 2,493,141 2,450,401 2,495,554 2,343,257 2,175,003 1,817,411
Long-term Debt Due After One Year 300,002 300,000 300,428 300,405 300,565 300,439
Deferred Income Taxes 128,754 99,379 105,515 81,317 74,712 60,917
Other Noncurrent Liabilities 611,178 602,494 592,102 612,759 612,804 623,805
Total Shareholders’ Equity 1,480,705 1,565,676 1,525,609 1,518,533 1,595,266 1,740,564
Total Liabilities and Shareholders’ Equity 5,013,780 5,017,950 5,019,208 4,856,271 4,758,350 4,543,136
*Unaudited
Note: Certain prior year amounts have been reclassified to conform with the 1999 presentation.
6
1997 1996 1995
Q4 Q3* Q2 * Q1* Q4 Q3* Q2 * Q1* Q4 Q3* Q2 * Q1*
10/31 7/31 4/30 1/31 10/31 7/31 4/30 1/31 10/31 7/31 4/30 1/31
299,324 198,319 233,996 124,574 246,964 228,603 245,318 193,972 292,934 305,730 312,487 313,840
10,089 33,960 39,059 44,121 69,378 113,736 137,710 149,873 137,758 127,273 98,677 111,893
917,604 847,235 835,618 767,861 742,547 572,016 590,279 596,569 470,104 400,431 369,641 333,163
691,395 649,259 567,873 578,027 561,490 465,736 373,321 376,247 362,910 328,234 303,940 250,002
- - - - - - - - - - - -
294,974 278,105 237,607 195,766 176,444 151,128 161,908 156,471 147,965 130,876 151,627 148,989
2,213,386 2,006,878 1,914,153 1,710,349 1,796,823 1,531,219 1,508,536 1,473,132 1,411,671 1,292,544 1,236,372 1,157,887
1,938,790 1,861,307 1,804,977 1,755,170 1,677,662 1,609,792 1,571,348 1,494,751 1,435,811 1,388,135 1,360,071 1,319,383
158,399 157,806 108,789 131,072 84,772 71,873 65,405 37,388 33,303 24,510 18,534 18,933
96,549 91,423 97,569 86,290 108,107 101,364 103,745 115,259 88,488 85,455 44,701 55,602
278,216 299,713 310,209 322,394 284,362 284,170 271,566 277,231 259,633 229,691 227,590 231,649
4,685,340 4,417,127 4,235,697 4,005,275 3,951,726 3,598,418 3,520,600 3,397,761 3,228,906 3,020,335 2,887,268 2,783,454
858,187 669,104 613,672 646,442 704,186 386,666 356,362 333,852 372,301 308,028 309,762 254,113
81,886 119,481 899 161,526 29,916 29,854 29,880 29,880 29,937 24,918 19,934 19,901
525,518 483,375 538,741 434,617 445,807 561,771 597,188 569,363 393,438 365,793 251,025 260,031
512,593 534,330 523,143 409,242 465,659 424,704 441,914 418,678 442,969 372,946 425,937 410,278
1,978,184 1,806,290 1,676,455 1,651,827 1,645,568 1,402,995 1,425,344 1,351,773 1,238,645 1,071,685 1,006,658 944,323
300,508 300,524 300,464 365 2,967 3,336 4,711 2,815 2,873 26,516 23,902 24,098
66,739 62,458 54,772 54,781 42,632 38,875 41,879 42,717 44,211 41,773 40,002 40,099
598,859 567,975 572,122 574,093 590,833 553,772 509,256 516,546 512,363 514,408 511,793 516,100
1,741,050 1,679,880 1,631,884 1,724,209 1,669,726 1,599,440 1,539,410 1,483,910 1,430,814 1,365,953 1,304,913 1,258,834
4,685,340 4,417,127 4,235,697 4,005,275 3,951,726 3,598,418 3,520,600 3,397,761 3,228,906 3,020,335 2,887,268 2,783,454
7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
April 30,
($ in thousands) 1999* 1998
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) earnings $ (21,814) $ 235,344
Adjustments to reconcile net (loss) earnings to cash provided by operating activities:
Depreciation, depletion & amortization 153,629 288,870
Discontinued operations - -
Change in accounting principle - -
Deferred taxes 5,216 28,780
Special provision, net of cash paid 130,424 -
Provisions for impairment/abandonment of joint ventures and investments - -
Gain on sale of business - -
Change in operating assets & liabilities, excluding effects of business
acquisitions/dispositions (188,557) 168,576
Other, net (21,342) (19,051)
Cash provided by operating activities 57,556 702,519
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (250,728) (600,933)
E&C businesses acquired - -
Coal businesses and reserves acquired - (12,004)
(Purchase) sale of marketable securities - -
Proceeds from sales and maturities of marketable securities - 10,089
Investments, net (6,863) (20,745)
Proceeds from sale of property, plant and equipment 77,634 125,493
Collection of notes receivable - -
Initial pretax cash proceeds from sale of Doe Run - -
Contributions to deferred compensation trust - (21,365)
Net assets held for sale, including cash - (26,375)
Proceeds from sale of business 36,300 -
Other, net (4,205) (17,477)
Cash utilized by investing activities (147,862) (563,317)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in long-term borrowings - -
Increase (decrease) in note payable to affiliate 41,972 -
Payments on long-term debt - (285)
Increase (decrease) in short-term borrowings, net (54,410) 341,809
Cash dividends paid (30,318) (63,497)
Purchases of common stock - (378,979)
Stock options exercised 1,852 9,935
Other, net (1,463) (6,965)
Cash provided (utilized) by financing activities (42,367) (97,982)
Increase (decrease) in cash and cash equivalents (132,673) 41,220
Cash and cash equivalents at beginning of period 340,544 299,324
Cash and cash equivalents at end of period $ 207,871 $ 340,544
*Unaudited
Notes: Prior periods have been restated to exclude from continuing operations the Lead segment which was discontinued in 1992. Certain prior year
amounts have been reclassified to conform with the 1999 presentation.
8
1997 1996 1995 1994 1993 1992
$ 146,187 $ 268,084 $ 231,768 $ 192,399 $ 166,800 $ 5,818
248,353 194,129 146,957 114,258 111,793 135,259
- - - - (34,184) 127,275
- - - - - 53,008
25,428 12,631 1,709 2,801 (6,082) (55,674)
- - - - - -
22,962 - - - - -
(7,222) - - - - -
(67,224) (60,353) 9,408 141,723 (61,430) 38,436
(39,860) (7,632) (23,491) 7,428 11,812 2,011
328,624 406,859 366,351 458,609 188,709 306,133
(466,202) (392,436) (318,942) (236,623) (158,822) (223,199)
(141,718) (87,085) (16,230) - - -
(39,482) (5,010) - (38,164) (10,700) (63,937)
- (67,069) (132,934) (60,213) 50,249 38,458
59,289 134,496 115,553 39,930 - -
(9,275) 3,991 (16,667) 214 (13,561) -
50,996 29,486 17,406 18,271 9,841 11,493
77,496 11,072 6,978 - - -
- - - 51,869 - -
(43,026) - (21,513) - - -
- - - - - -
11,992 - - - - -
(12,041) (23,771) (14,686) (1,172) 8,626 (1,169)
(511,971) (396,326) (381,035) (225,888) (114,367) (238,354)
304,097 - - - - -
- - - (30,000) 30,000 -
(8,378) (42,456) (35,604) (1,994) (45,689) (17,969)
21,692 26,109 9,980 (10,096) 96 29
(63,750) (56,830) (49,712) (42,828) (39,340) (32,486)
(33,924) - - - - -
16,007 17,351 9,757 11,946 8,709 2,540
(37) (677) (1,271) (125) (8,620) (8,569)
235,707 (56,503) (66,850) (73,097) (54,844) (56,455)
52,360 (45,970) (81,534) 159,624 19,498 11,324
246,964 292,934 374,468 214,844 195,346 184,022
$ 299,324 $ 246,964 $ 292,934 $ 374,468 $ 214,844 $ 195,346
9
FLUOR CORPORATION ELEVEN-YEAR FINANCIAL SUMMARY
Common *Pretax Net
Year
Work Stock Price Earnings *Earnings Earnings
Oct. 31
*Revenues Performed New Aw ards Backlog Range P/E (Loss) *Pretax *Tax (Loss) (Loss)
($000) ($000) ($000) ($000) (Dollars) Range ($000) Margin % Rate % ($000) ($000)
1999
4th Qtr**
10/31/99
3rd Qtr**
7/31/99
2nd Qtr**
3,091,307 2,601,800 1,621,100 10,222,500 37-26 27-19 (64,523) (2.1) (13.0) (72,895) (72,895)
4/30/99
1st Qtr**
3,384,065 2,890,200 1,700,900 11,064,500 45-38 15-12 74,899 2.2 31.8 51,081 51,081
1/31/99
1998 13,504,773 11,593,100 9,991,900 12,645,300 52-34 24-11 362,626 2.7 35.1 235,344 235,344
1997 14,298,541 12,795,200 12,122,100 14,369,900 75-41 45-19 255,269 1.8 42.7 146,187 146,187
1996 11,015,192 9,870,300 12,487,800 15,757,400 71-55 24-19 413,218 3.8 35.1 268,084 268,084
1995 9,301,384 8,378,500 10,257,100 14,724,900 59-42 22-17 362,214 3.9 36.0 231,768 231,768
1994 8,485,267 7,673,000 8,071,500 14,021,900 56-39 25-18 303,299 3.6 36.6 192,399 192,399
1993 7,850,169 7,109,700 8,000,900 14,753,500 47-39 84-19 242,200 3.1 31.1 166,800 166,800
1992 6,600,696 5,888,900 10,867,700 14,706,000 48-35 100-17 215,350 3.3 37.2 135,250 5,818
1991 6,571,958 5,791,800 8,531,550 11,181,300 55-31 29-18 228,401 3.5 33.0 153,089 164,148
1990 7,248,868 6,352,800 7,632,300 9,557,800 49-29 29-16 153,580 2.1 22.3 119,388 154,626
1989 6,127,211 5,240,800 7,135,300 8,360,900 37-19 27-14 135,638 2.2 38.0 84,069 112,662
1988 5,008,931 4,267,900 5,955,200 6,658,600 23-11 32-15 62,070 1.8 38.0 38,588 60,209
* From continuing operations ** Unaudited NM = Not Meaningful
Note: 1988 to 1992 financial data shown above has been restated to exclude from continuing operations the Lead segment which was
discontinued in the fourth quarter of fiscal 1992.
10
*Diluted Net Diluted Shares to Percent of Total
Earnings Earnings Compute *Operating Shareholders’ Capitalization
(Loss) Per (Loss) Per Per Share Diluted Profit Equity Per Return on
Share1 Share1 Dividend EPS1 (Loss) Shareholders’ Common Average Long-Term Shareholders’ Salaried
(Dollars) (Dollars) (Dollars) (Millions) ($000) Equity ($000) Share Equity 2 % Debt % Equity % Employees
(0.97) (0.97) 0.20 75.2 (45,164) 1,480,705 19.54 6.9 16.8 83.1 29,731
0.68 0.68 0.20 75.6 95,800 1,565,676 20.66 14.9 16.1 83.9 31,009
2.97 2.97 0.80 79.1 415,100 1,525,609 20.19 14.5 16.5 83.5 30,751
1.75 1.75 0.76 83.5 276,980 1,741,050 20.79 8.7 14.7 85.3 31,392
3.21 3.21 0.68 83.4 454,534 1,669,726 19.93 17.4 0.2 99.8 27,514
2.81 2.81 0.60 82.6 397,058 1,430,814 17.20 17.6 0.2 99.8 18,880
2.34 2.34 0.52 82.2 354,276 1,220,456 14.79 17.1 2.0 98.0 17,088
2.04 2.04 0.48 81.7 291,277 1,044,122 12.72 17.4 5.4 94.6 17,759
1.66 0.07 0.40 81.3 270,939 880,802 10.81 0.6 6.5 93.5 17,939
1.89 2.03 0.32 80.8 226,921 900,645 11.10 20.2 7.8 92.2 18,091
1.48 1.92 0.24 80.5 195,365 741,256 9.22 23.3 7.2 92.8 22,188
1.05 1.41 0.14 79.7 168,446 589,914 7.39 21.5 9.6 90.4 20,059
0.48 0.75 0.02 79.8 101,194 467,120 5.91 14.2 16.9 83.1 17,876
1
EPS for all periods have been calculated in accordance with FAS #128.
2
Based on earnings and equity for previous 12 months.
11
FLUOR CORPORATION STATISTICAL HIGHLIGHTS
1999* 1998*
YT D Q4 Q3 Q2 Q1 YT D Q4 Q3 Q2 Q1
($ in thousands) 1999 10/ 31 7/ 31 4/ 30 1/ 31 1998 10/ 31 7/ 31 4/ 30 1/ 31
ENGINEERING AND CONSTRUCTION
Revenues 5,947,387 2,837,953 3,109,434 12,377,476 3,002,738 3,253,885 3,014,378 3,106,475
Operating (Loss) Profit (19,832) (76,905)† 57,073 242,348 65,733 65,361 57,867 53,387
Operating Margin -0.3% #DIV/0! #DIV/0! (2.7%)† 1.8% 2.0% 2.2% 2.0% 1.9% 1.7%
New Aw ards 3,322,022 ,621 37
1 ,1 1,700,885 9,991 3
,91 1,904,302 2,708,909 2,776,559 2,602,143
Backlog, at end of period 10,222,533 10,222,533 1
1 ,064,483 12,645,333 12,645,333 13,739,091 3,91
1 3,982 4,01
1 8,083
Work Performed 5,492,049 2,601,849 2,890,200 1 ,593,1
1 02 2,807,462 ,71
3,021 5 2,807,360 2,956,565
COAL (short tons in thousands)
Revenues 527,985 253,354 274,631 1 27,297
,1 292,085 274,967 267,701 292,544
Operating Profit 70,448 31,741 38,707 172,762 52,101 43,672 40,298 36,691
Operating Margin 13.3% #DIV/0! #DIV/0! 12.5% 4.1
1 % 15.3% 17.8% 15.9% 5.1
1 % 12.5%
Steam Coal Sold (short tons) 10,695 5,327 5,368 19,398 5,274 4,679 4,416 5,029
Metallurgical Coal Sold (short tons) 7,430 3,435 3,995 1 0
8,21 4,582 4,479 4,446 4,703
Total Coal Sold (short tons) 8,1
1 25 0 0 8,762 9,363 37,608 9,856 9,158 8,862 9,732
COAL PRICING (average realized
prices)
Metallurgical Coal ($/ton) 32.88 32.73 32.91 33.07 32.94 33.15 32.90 33.28
Steam Coal ($/ton) 26.21 26.14 26.33 26.79 26.50 26.78 27.06 26.88
*Quarterly data unaudited.
**Purchased coal sales are immaterial as they have been replaced with produced coal from reserves acquired in recent years.
Includes special provision of $136.5 million pretax for strategic reorganization.
N/A = Operating profit not reported on a quarterly basis prior to 1997. Backlog US
International vs. U.S.
Int’l
E&C Operating Profit dollars in billions
dollars in millions
320 15.8
286 14.7 14.8 14.7 14.4
259 242 14
221 12.6
166 191 11.2
10.2
117 135
9.6
122* 8.4
89 90 91 92 93 94 95 96 97 98
*Includes project and cost reduction provisions 89 90 91 92 93 94 95 96 97 98 99*
*At April 30, 1999
E&C Operating Margin (%) New Awards
dollars in billions 12.5
3.4 3.4 12.1
3.2 3.1 3.2 10.9*
2.8 10.3 10.0
2.2 2.1 8.5
1.9 7.6 8.0 8.1
7.1
0.9
-0.3
89 90 91 92 93 94 95 96 97 98 99* 89 90 91 92 93 94 95 96 97 98
*Six months ended April 30, 1999; Excludes special provision of *Includes $2.2 billion for a 5-year contract with U.S. Dept. of Energy
$136.5 million pretax.
12
1997* 1996* 1995*
FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1
1997 10/ 31 7/ 31 4/ 30 1/ 31 1996 10/ 31 7/ 31 4/ 30 1/ 31 1995 10/ 31 7/ 31 4/ 30 1/ 31
3,21 5
1 7,51 3,698,463 3,417,425 2,917,306 3,184,321 10,054,365 3,064,370 2,462,584 2,336,041 91
2,1 ,370 8,451,626 2,350,050 2,223,663 2,023,132 1,854,781
122,214 87,431 71,090 1
(1 0,278) 73,971 320,008 N/A N/A N/A N/A 286,025 N/A N/A N/A N/A
0.9% 2.4% 2.1% -3.8% 2.3% 3.2% N/A N/A N/A N/A 3.4% N/A N/A N/A N/A
2,1 48
1 22,1 2,675,657 2,672,069 3,183,843 3,590,579 12,487,756 3,424,356 3,107,400 2,967,500 2,988,500 10,257,100 2,673,900 2,61 ,900
1 2,719,400 2,251,900
14,369,900 14,369,900 15,341,407 6,1
1 36,494 15,976,453 15,757,410 1 0 5,599,200
5,757,41 1 15,362,000 1 08,200 1
5,1 4,724,900 14,724,900 14,549,600 14,404,200 4,1 5,700
1 1
12,795,201 3,726,509 2,21
3,21 6 2,728,143 3,128,333 9,870,287 2,995,687 2,394,200 2,309,800 2,170,600 8,378,500 2,330,300 2,200,000 2,007,900 1,840,300
,081
1 ,026 304,279 258,480 268,527 249,740 960,827 263,358 240,237 246,188 1
21 ,044 849,758 225,564 21 68
3,1 206,181 204,845
154,766 46,990 38,632 36,575 32,569 134,526 N/A N/A N/A N/A 1 ,033
11 N/A N/A N/A N/A
14.3% 15.4% 14.9% 13.6% 13.0% 14.0% N/A N/A N/A N/A 1 %
3.1 N/A N/A N/A N/A
19,300 5,217 4,624 4,915 4,544 17,520 4,875 4,228 4,433 3,984 15,777 4,052 3,878 3,825 4,022
16,343 4,821 3,940 3,998 3,584 13,571 3,671 3,562 3,536 2,802 1
1 ,633 3,149 2,987 2,823 2,674
35,643 10,038 8,564 8,913 8,128 31,091 8,546 7,790 7,969 6,786 27,410 7,201 6,865 6,648 6,696
33.26 33.77 33.28 32.80 33.18 33.36 34.08 32.82 33.22 33.26 32.75 33.31 32.92 32.53 32.11
27.69 26.98 27.38 27.79 28.61 28.83 28.23 28.99 28.87 29.37 29.53 29.61 29.42 29.69 29.39
Coal Operating Profit Coal Reserves
dollars in millions 173 millions of short tons
155 1,764 1,828
1,499 1,549
135 ,41
1 1
111 1,089
95 972
80 81* 784 761
61 737
51 60
89 90 91 92 93 94 95 96 97 98 89 90 91 92 93 94 95 96 97 98
*Excludes nonrecurring charge of $10 million
Coal Sold
Co al O p e ratin g M arg in (%)
thousands of short tons
14.0 14.3 14.5
13.1 13.3
12.4
1
1 .5
1 .3*
1
8.0
7.0
6.3
89 90 91 92 93 94 95 96 97 98
Steam 11.9 13.1 13.5 13.7 16.0 16.7 15.8 17.5 19.3 19.4
Metallurgical 4.6 5.5 3.4 3.8 5.2 7.1 11.6 13.6 16.3 18.2
89 91 93 95 97 9 9 ** Purchased 9.3 8.0 6.6 4.4 2.3 1.3 * * * *
*Excludes nonrecurring charge of $10 million *Amounts are immaterial
**Six months ended April 30, 1999
13
FLUOR CORPORATION CONSOLIDATED BACKLOG
($ in millions)
Backlog by Industry Groups
Fiscal Power/ Diversified
Year Period Process Industrial Government Services Total
$ % $ % $ % $ % $ %
1991 Year 5,043 45 4,127 37 1,445 13 566 5 11,181 100
1992 Year 6,305 43 3,737 25 3,804 26 860 6 14,706 100
1993 Year 7,430 50 3,449 23 3,212 22 663 5 14,754 100
1994 Year 7,668 55 3,564 25 2,369 17 421 3 14,022 100
1995 Year 6,671 45 4,516 31 3,275 22 263 2 14,725 100
1996 Year 4,903 31 6,496 41 3,621 23 737 5 15,757 100
1997 Year 6,384 44 5,178 36 2,092 15 716 5 14,370 100
1998 Q1 6,563 47 4,677 33 1,630 12 1,148 8 14,018 100
Q2 6,129 44 5,280 38 1,371 10 1,134 8 13,914 100
Q3 6,339 46 5,239 38 1,149 9 1,012 7 13,739 100
Q4 5,345 42 4,761 38 1,272 10 1,267 10 12,645 100
1999 Q1 4,712 43 3,966 36 1,114 10 1,273 11 11,065 100
Q2 4,141 41 3,755 37 1,166 11 1,161 11 10,223 100
Q3 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Q4 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
NEW AWARDS BY INDUSTRY GROUPS
1996 Year 4,061 33 6,182 50 1,428 11 817 7 12,488 100
1997 Year 6,090 50 4,057 33 1,150 9 825 7 12,122 100
1998 Q1 1,532 59 599 23 140 5 331 13 2,602 100
Q2 792 29 1,703 61 63 2 219 8 2,777 100
Q3 1,609 59 778 29 182 7 140 5 2,709 100
Q4 545 29 367 19 426 22 566 30 1,904 100
Total 4,478 45 3,447 34 811 8 1,256 13 9,992 100
1999 Q1 981 58 329 19 194 11 197 12 1,701 100
Q2 371 23 734 45 351 22 165 10 1,621 100
Q3 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Q4 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Total 1,352 41 1,063 32 545 16 362 11 3,322 100
*Backlog data has been reclassified to reflect the realignment in 1994 of the companys operations into industry and regional groups.
Diversified
Services
Backlog by Industry Power 11%
7%
April 30, 1999 Government Process
$10.2 Billion 4% 41%
Industrial
37%
14
Backlog by Regional Groups
Europe,
Fiscal United Africa and
Year Period States Middle East Asia Pacific Americas Total
$ % $ % $ % $ % $ %
1991 Year 7,915 71 2,174 20 377 3 715 6 11,181 100
1992 Year 10,649 72 2,389 17 608 4 1,060 7 14,706 100
1993 Year 9,045 61 3,178 22 1,679 11 852 6 14,754 100
1994 Year 6,802 49 4,387 31 1,662 12 1,171 8 14,022 100
1995 Year 6,666 45 3,088 21 3,303 23 1,668 11 14,725 100
1996 Year 7,326 46 2,677 17 4,402 28 1,352 9 15,757 100
1997 Q4 5,665 39 3,828 27 3,959 28 918 6 14,370 100
1998 Q1 5,761 41 3,224 23 3,624 26 1,409 10 14,018 100
Q2 5,926 43 3,098 22 3,085 22 1,805 13 13,914 100
Q3 5,870 43 2,543 18 2,729 20 2,597 19 13,739 100
Q4 5,911 47 2,023 16 2,260 18 2,451 19 12,645 100
1999 Q1 5,058 46 1,857 17 1,695 15 2,455 22 11,065 100
Q2 4,795 47 1,587 16 1,248 12 2,593 25 10,223 100
Q3 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Q4 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
NEW AWARDS BY REGIONAL GROUPS
1996 Year 5,749 46 2,141 17 3,283 26 1,315 11 12,488 100
1997 Year 5,443 45 3,438 28 2,419 20 822 7 12,122 100
1998 Q1 1,323 51 348 13 170 7 761 29 2,602 100
Q2 1,452 52 332 12 233 8 760 27 2,777 100
Q3 1,475 54 193 7 191 7 850 31 2,709 100
Q4 1,386 73 201 11 52 3 265 14 1,904 100
Total 5,636 56 1,074 11 646 7 2,636 26 9,992 100
1999 Q1 701 41 448 26 89 5 463 28 1,701 100
Q2 894 55 187 12 25 2 515 31 1,621 100
Q3 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Q4 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0!
Total 1,595 48 635 19 114 3 978 30 3,322 100
Asia Pacific Australia
7% 5%
Canada
Backlog by Region U.S. 15%
April 30, 1999 47% Europe
$10.2 Billion 10%
Middle East Latin America
6% 10%
15
STRATEGIC BUSINESS ENTERPRISE FINANCIAL REVIEW*
1999 1998
YTD Q4 Q3 Q2 Q1 YTD Q4 Q3 Q2 Q1
($ in thousands) (Unaudited) 1999 10/31 7/31 4/30 1/31 1998 10/31 7/31 4/30 1/31
FLUOR DANIEL
Revenues 4,530,000 2,084,900 2,445,100 NA NA NA NA NA
CFM Revenues % 44.7% 34.9% 53.1% NA NA NA NA NA
Gross Margin % 5.2% #DIV/0! #DIV/0! 5.7% 4.8% NA NA NA NA NA
Operating Profit 78,600 38,800** 39,800 NA NA NA NA NA
Total Assets 1,320,200*** 1,320,200*** NA NA NA NA NA NA
FLUOR GLOBAL SERVICES
Revenues 1,417,400 753,100 664,300 NA NA NA NA NA
Gross Margin % 9.2% 8.8% 9.7% NA NA NA NA NA
Operating Profit 38,100 20,800** 17,300 NA NA NA NA NA
Total Assets 952,700 952,700 NA NA NA NA NA NA
FLUOR SIGNATURE SERVICES
Total Assets 461,700*** 461,700*** NA NA NA NA NA NA
MASSEY COAL
Revenues 528,000 253,400 274,600 1,127,300 292,100 275,000 267,700 292,500
Operating Profit 70,400 31,700 38,700 172,800 52,100 43,700 40,300 36,700
Total Assets 1,906,200 #DIV/0! #DIV/0! 1,906,200 NA NA NA NA NA NA
Quarterly Data Unaudited
NA=Strategic Business Enterprise (SBE) financial data not reported prior to 1999.
* As announced in March 1999, the company has reorganized its business segments into strategic business enterprises (SBE) (see the chart
on page 17). The Engineering and Construction business segment is now two separate SBEs: Fluor Daniel and Fluor Global Services. Fluor
Daniel will concentrate on the companys engineering, procurement and construction business. Fluor Global Services includes American
Eqipment Company, TRS Staffing Solutions, Government Services, Telecommunications, and Operations, Maintenance & Consulting. A new
SBE, Fluor Signature Services, is consolidating most of Fluors business, administrative and support functions, and will be operational by
October 31, 1999. Restatement of prior period comparisons will be completed by fiscal year end.
** Excludes one-time, special provision of $136.5 million pretax.
*** Total assets have been adjusted from amounts reported in the May 26, 1999 press release due to the reclassification of certain
investments.
16
FLUOR CORPORATION*
Fluor Fluor Fluor
Fluor Daniel A.T.
Constructors Global Signature
Industry Groups and Markets Served Services Massey Services
International
Chemicals & Oil, Gas
Infrastructure Mining Manufacturing
Life Sciences & Power
Petrochemicals Power Transportation Mining Consumer Products American Steam & Business
Equipment Metallurgical Coal Administrative &
Chemicals Refining Food & Beverage Company Production Support Services
Pharmaceuticals Production Micro-Electronics Government
Biotechnology & Pipelines Light Metals Services
Life Sciences
Gas TRS Staffing
Solutions
Operations,
Maintenance &
Consulting
Telecom
*New organizational structure announced on March 9, 1999, as part of Fluors new strategic direction to
position the company for long-term profitability, growth and increased shareholder value.
17
SUMMARY OF CONTRACT ANNOUNCEMENTS* THROUGH JUNE 25, 1999
*Certain contracts are not announced per clients request
Date Contract Business Contract Complete Industry Description
Announced Value Unit Type Date Served
($MM)
5/19/99 Can Global Equipment NA Chemicals PRENTISS, ALBERTA, CANADA-American
$8.5+ Services rentals, Equipment Company was awarded a contract from
maintenance, Union Carbide Canada for the LP-7 project
small tools, expansion to its existing complex. Union Carbide
supplies and is constructing a 1.3 billion pounds per year, low-
site services pressure polyethylene plant. The contract runs for
the duration of the program at the site.
5/18/99 $300+ Oil, Gas & Engineering, 2002 Oil ,
FORT MCMURRAY ALBERTA, CANADA-Fluor
Power procurement, Daniel and Fluor Constructors Canada Ltd. will
construction participate in a project alliance for the expansion of
management Suncor Energy’s oil sands facilities to increase
and services synthetic crude oil production from 120,000 to
210,000 barrels per day.
2/8/99 Not Oil, Gas & Engineering, 2000 Power ,
HIDALGO COUNTY TEXAS-Duke/Fluor Daniel
Disclosed Power procurement, awarded a contract by Duke Energy Power
construction Services for a 500-megawatt, natural gas-fired
services merchant power plant. The total installed cost is
$175 million.
2/4/99 $50 Operation- Design, 2001 Chemicals N. & S. CAROLINA, VIRGINIA, RHODE ISLAND-
s, Mainte- engineering, Fluor Daniel Maintenance Services awarded a 3-
nance, & construction, year multi-site contract by Clariant to provide a
Consulting maintenance & variety of services primarily focused on
plant services maintenance and plant services. The contract value
was booked in Q498.
2/1/99 Not Oil, Gas & Engineering, 2000 Power ,
PENOBSCOT COUNTY MAINE-Duke/Fluor Daniel
Disclosed Power procurement, awarded a contract by Duke Energy Power
construction Services for a 520-megawatt, natural gas-fired
services merchant power plant.
1/13/99 Not Energy & Engineering, 2001 Power DEARBORN, MICHIGAN-Duke/Fluor Daniel
Disclosed Chemicals procurement, awarded a turnkey contract by Dearborn Industrial
construction, Generation, LLC, which is a company formed by
commissioning, CMS Energy Corporation and DTE Energy
startup & testing Services, to build a 550-megawatt power plant at
the Rouge complex. Total installed cost is $240
million.
12/10/98 $49 Energy & Construction 2000 Petro- BAHIA BLANCA, ARGENTINA-Fluor Daniel and
Chemicals management & chemicals SADE Ingeniera y Construcciones S.A. awarded a
services contract by Polisur S.A., a joint venture of The Dow
Chemical Company (Dow) and Yacimientos
Petroliferos Fiscales (YPF), for its 270,000 metric
tons per year polyethylene project.
12/7/98 NA Mining & Feasibility study NA Mining BEIRA,MOZAMBIQUE-Fluor Daniel and the
Minerals government of Mozambique signed a
memorandum of understanding regarding a U.S.
Trade and Development Agency-sponsored
feasibility study for the development of an
aluminum smelter project. Fluor Daniel will work
with Asea Brown Boveri AG and Kaiser Aluminum
Corp. in performing the study.
11/18/98 Not Diversified Equipment 2008 Mining LIMA, PERU-American Equipment Co.’s AMECO
Disclosed Services rental, sales, Peru S.A.C. division awarded contract to provide
maintenance & equipment rental and sales, equipment
site services maintenance, small tools and supplies, and related
site services to Doe Run Peru at its La Oroya
metallurgical smelting complex in the Andes
Mountains.
18
Date Contract Industry Contract Complete Industry Description
Announced Value Group Type Date Served
($MM)
11/11/98 Can$15 Diversified Equipment NA Chemicals ALBERTA, CANADA-AMECO Services, Inc. awarded
Services supply, contract to supply construction equipment, equipment
maintenance maintenance, small tools and supplies, and related
& site site services to NOVA Chemicals Ltd. for its Joffre
services 2000 project expansion at its existing complex. The
contract runs for the duration of NOVA’s capital
improvement program at the Joffre site.
11/10/98 Not Energy & Engineering, 1999 Power POINT LISAS, TRINIDAD-Duke/Fluor Daniel awarded
Disclosed Chemicals procurement, contract by InnCOGEN Limited, the wholly-owned
design & Trinidadian subsidiary of York Research Corp., to
construction provide construction services for a 225-megawatt
natural gas fired power plant in the country of Trinidad
and Tobago. The power plant will be designed to use
three MS7111 gas turbines in simple cycle operation.
10/26/98 $147 Industrial Engineering, 1999 Pulp & LAWTON, OKLAHOMA-Fluor Daniel selected by
procurement, Paper Republic Group Inc. and its wholly-owned subsidiary,
construction & Republic Paperboard Co., to design and build a 100-
project percent recycled paperboard mill. Total costs are
management estimated to be $160 to $170 million.
10/15/98 Not Energy & Engineering, 2000 Power PARIS, TEXAS-Duke/Fluor Daniel awarded turnkey
Disclosed Chemical procurement, contract by Panda Paris Power LP, a subsidiary of
construction & Panda Energy International, Inc., for a 1,000 megawatt,
start-up greenfield power plant.
services
9/8/98 $200+ Energy & Engineering 2000 Chemicals CHOCOLATE BAYOU, TEXAS-Contract for the
Chemicals procurement, expansion of Solutia’s acrylonitrile facility, a key
construction feedstock for their Aerilan (R) acrylic fiber and nylon
family of products. Solutia was formerly the chemicals
business of Monsanto Corp. and was spun off in 9/97.
8/6/98 $100 Energy & Design, 2000 Chemicals BAHIA BLANCA, ARGENTINA-Awarded contract by
Chemicals procurement, Petroquimica Bahia Blanca, a joint venture among The
construction Dow Chemical Co., Yacimientos Petroliferos Fiscales
and Itochu, for its new ethane cracking facility. Total
installed cost is $300 million.
8/25/98 Not Energy & Operations, NA Power EAST CHICAGO, INDIANA-Award of a 15-yr contract
Disclosed Chemicals maintenance, to Duke/Fluor Daniel by Cokenergy, Inc., a unit of
staffing and Primary Energy for the 94-megawatt, cogeneration
management steam delivery system at the Indiana Harbor HRC
services Facility.
7/31/98 Not Industrial Engineering, NA Telecom- LONDON, ENGLAND-London Underground Limited
Disclosed procurement, munications selected CityLink Telecommunications, a consortium
construction, including Fluor Daniel, to replace and manage the
testing radio and transmission services for the entire Tube
network, known as "Connect." The project is worth
about £1 billion over 20 years. Award of the contract is
subject to agreement on definitive terms, conditions
and financing, which is anticipated later this year.
7/27/98 $308 Industrial Design, 2002 Infra- RICHMOND, VIRGINIA-FD/MK LLC, a venture of Fluor
construction structure Daniel and Morrison Knudsen, is proceeding with the
Route 895 Connector project for the state's
Department of Transportation. Total installed cost is
$324 million.
6/18/98 $27 Energy & Engineering 1999 Petro- JOSE, VENEZUELA-Basic engineering services,
million Chemicals services, chemicals phase one, for a new olefin complex that Mobil
phase construction, Chemical Co. and Petroquimica de Venezuela, S.A.
one design (Pequiven) intend to construct and operate. Total
installed cost is about $2 billion.
19
Date Contract Industry Contract Complete Industry Description
Announced Value Group Type Date Served
($MM)
5/19/98 Not Diversified Equipment NA Refinery TOLEDO, OHIO-Amercian Equipment Company, a
Disclosed Services services Fluor Daniel company, will be the sole-source supplier
of equipment, maintenance, tools, scaffolding and
related services for BP Oil’s Toledo Repositioning
Project, which has been underway for 10 months to
upgrade heavy crude fractions into higher value
transport fuels.
5/13/98 Not Industrial Engineering, 1999 Pharma- EUROPE-$265-million contract to renovate and
Disclosed procurement, ceutical expand selected Warner-Lambert pharmaceutical
construction, facilities in Europe.
validation
services
4/27/98 $250+ Industrial Architectural, 2000 Commer- LAS VEGAS, NEVADA-ADP Marshall, a Fluor Daniel
engineering, cial company, awarded contract to design and build the
procurement, base facilities for the new Aladdin Hotel & Casino in
construction Las Vegas. Total installed cost of the base facilities
services exceeds $825 million.
4/20/98 $20 Energy & Engineering, 1999 Petro- ALTAMIRA, TAMAULIPAS, MEXICO-ICA Fluor Daniel
Chemicals procurement, chemicals awarded contract to design and build propylene
construction splitter facility for Indelpro, a joint venture between
services Alpek - the petrochemical and synthetic fiber group of
Mexican corporation Alfa - and Montell. The total
installed cost of the project is $40 million.
4/14/98 $40 Energy & Project 1999 Oil & Gas HOUSTON, TEXAS-Arctic Pacific Contractors, a
Chemicals engineering, Production 50/50 joint venture between Fluor Daniel and Brown &
procurement, Root Energy Serv., was selected by Sakhalin Energy
construction Investment Co., owned by subsidiaries of Marathon
planning, other Oil, Royal Dutch Shell, Mitsui and Mitsubishi, to
support services provide services for basic design concept and
definition phases of the Sakhalin II project located
along Russia’s Pacific Coast. The project will include
multiple offshore oil and gas production platforms;
subsea and onshore pipelines; onshore processing
facilities, terminals and infrastructure.
4/14/98 Not Energy & Engineering, 2000 Chemicals PRENTISS, ALBERTA-Contract for new polyethylene
Disclosed Chemicals procurement, plant for Union Carbide.
construction
3/30/98 Not Energy & Engineering, 2000 Petro- JOFFRE, ALBERTA-Stone & Webster/Fluor Daniel
Disclosed Chemicals procurement, chemical Petrochemicals (SW/FD) has signed a contract with
construction, NOVA Chemicals Ltd. and Union Carbide
project Corporation for a third ethylene plant at Nova’s Joffre
management complex. Upon start-up, this site will be the largest
services ethylene manufacturing complex in the world.
SW/FD’s contract value is about $630 million.
3/26/98 Not Diversified Plant startup 1999 Steel ROCKPORT, INDIANA-In cooperation with Siemens
Disclosed Services support, Energy & Automation Inc., Fluor’s Maintenance &
maintenance Industrial Services unit will provide plant services to
services AK Steel Corporation for its new finishing facility.
2/17/98 Not Industrial Engineering, 2008 Mining LA OROYA, PERU-Contract to upgrade and
Disclosed procurement, modernize The Doe Run Co.’s metallurgical smelting
construction complex. Part of a 10-year capital improvement
management program, Fluor Daniel will upgrade equipment,
services provide safety and craft training programs, and
enhance its environmental performance.
2/16/98 Not Energy & Engineering, 1999 Power INGLESIDE, TEXAS-Duke/Fluor Daniel was
Disclosed Chemicals procurement, awarded a contract by Ingleside Cogeneration
construction, Limited Partnership to design and build a nominal
start-up, testing 440-megawatt, natural gas-fired cogeneration power
services plant. Total installed cost is $210 million.
20
Date Contract Industry Contract Type Complete Industry Description
Announced Value Group Date Served
($MM)
1/20/98 $291 Industrial Design, 2001 Infra- SOUTH CAROLINA-Notice to proceed on the
construction structure Conway Bypass project, a design/build contract for a
28.5-mile highway, following the arrangement of a
funding package approved by the State Infrastructure
Bank (SIB) for the Road Improvement Development
Effort (RIDE) Program.
1/6/98 $100 Environ- Full-service 2003 Govern- WORLDWIDE-Fluor Daniel GTI has been selected by
(Over 5 mental remediation ment the Air Force Center for Environmental Excellence to
years) execute remediation projects on US Air Force bases
worldwide. The award consists of a one-year base
contract, with four one-year options and is part of a
Multiple Award Remediation Contract valued at $400
million, which is shared with other contractors.
1/5/98 $20 Govern- Nuclear design, 1999 Medical TORONTO, CANADA-Contract with Atomic Energy of
(Canada) ment engineering, Canada Limited to design and build a medical
construction isotopes processing facility. When completed the
facility will house hot cells used in isotope separation.
Total installed cost is (Canadian) $140 million.
10/20/97 $330 Industrial Engineering, 1999 Mining PILBARA, WESTERN AUSTRALIA-Services for the
procurement, Yandicoogina iron ore project for Hamersley Iron Pty
construction Ltd, a wholly owned subsidiary of Rio Tinto Ltd.
Responsibil- ities include the ore processing plant,
reclaim and train loadout facility, associate mine,
infrastructure, and a 93-mile railway. Total installed
cost is $513 million.
10/20/97 Not Energy & Project 2000 Oil COMPECHE, MEXICO-ICA Fluor Daniel’s
Disclosed Chemicals management, multinational consortium has been awarded a contract
engineering, by Pemex Exploracion y Produccion to build, own and
procurement, operate the world’s largest nitrogen generation
construction complex. Total capacity will be 1.2 billion standard
services cubic feet per day of nitrogen. Included are 400
megawatts of electrical generating capacity. Total
construction cost is $1 billion.
9/1/97 Not Energy & Design, 1999 Chemicals ALVIN, TEXAS-Fluor Daniel was chosen, along with
Disclosed Chemicals engineering its joint-venture partner, Technip, to expand a
procurement, polypropylene manufacturing facility at Amoco
construction Chemical Company’s Chocolate Bayou Chemical
Plant. The new single reactor facility will increase
Amoco’s polypropylene capacity by 250,000 metric
tons per year.
6/30/97 Not Process Project 2001 Petro- RUWAIS, ABU DHABI-Fluor Daniel was selected to
Disclosed management, chemical provide services for a world-scale ethylene unit, two
design, polyethylene units and associated utilities and offsite
engineering, facilities for ADNOC-Borealis. The complex is a joint
procurement, venture, owned 60 percent by ADNOC (Abu Dhabi
construction National Oil Company) and 40 percent by Borealis.
consultancy Borealis is the largest producer of polyolefin plastics
services in Europe and the fifth largest worldwide.
6/16/97 Not Govern- Services Ongoing Environ- ROSSLYN, VIRGINIA-Fluor Daniel was one of three
Disclosed ment mental organizations selected by the Federal Emergency
Management Agency (FEMA) to assist in responding
to natural disasters, as a Technical Assistance
Contractor for the Public Assistance Program. Terms
of the contract require mobilization of up to 100
specialists within 48 hours of notification, over a
period of 60 days.
5/19/97 $500 Process Engineering, 1999 Chemicals CONNECTICUT-Three-year contract to provide
procurement, services to Witco in support of its program to
construction, restructure and consolidate its worldwide
safety and manufacturing facilities. Fluor Daniel, with support
environmental from its environmental company, Fluor Daniel GTI, will
services modernize more than 20 manufacturing facilities.
21
Date Contract Industry Contract Type Complete Industry Description
Announced Value Group Date Served
($MM)
5/6/97 $1.9 Process Program 2000 Petro- YANBU, SAUDI ARABIA-Contract with Saudi Yanbu
Billion manager, chemical Petrochemical Company (Yanpet) to double the
engineering, capacity of its petrochemicals complex at Yanbu. The
procurement, complex is a 50-50 joint venture between Mobil Yanbu
construction Petrochemicals Company Inc., a subsidiary of Mobil
services Corporation, and Saudi Basic Industries Corporation.
2/18/97 $6 Process Engineering, 1999 Lube Oil HAMBURG, GERMANY-Contract to provide services
procurement, for the modernization, revamp and automation of
construction Deutsche Shell AG’s Grasbrook lube oil blending
management facility, which is one of the largest in the world. Total
services installed cost is approximately $26 million.
1/20/97 $20 Diversified Construction, 2000 Environ- NASHVILLE DISTRICT-Fluor Daniel GTI was selected
Services demolition, mental by the U.S. Army Corps of Engineers to lead a team
remediation to provide services at hazardous, toxic and
services radioactive waste sites in nine states. The one-year
contract has two one-year options, and is valued at up
to $20 million for three years.
1/20/97 $90 Power Engineering, Ongoing Power EAST CHICAGO, INDIANA-Fluor Daniel formed an
procurement, expanded alliance with Primary Energy, a wholly
construction owned subsidiary of NIPSCO Industries, to provide
services efficient, on-site energy centers for major industrial
companies throughout the U.S. The latest in a series
of major projects is a contract to build a 95-megawatt
cogeneration plant and flue gas desulfurization
system at the Inland Steel Indiana Harbor Facility.
1/9/97 $30 Process Design, 1999 Refinery POLAND-Two contracts by Rafineria Gdanska S.A.,
engineering, one is to provide services for a major refinery
procurement, modernization which will upgrade and expand the
construction production capacity of environmentally friendly fuels
services and the other is to perform detailed services for the
offsites, utility and infrastructure facilities. Total
installed cost is $400 million.
12/16/96 Not Industrial Construction 1999 Transporta- SEOUL, KOREA-Fluor Daniel is one of four
Disclosed management tion companies in a consortium which will build the
concrete and structural frame of the main passenger
terminal building for the new Inchon International
Airport for Korea Airport Construction Authority. The
5.7 million square foot building is the centerpiece of
Seoul’s new international airport.
10/22/96 $1+ Industrial Engineering, 1999 Mining BATU HIJAU, INDONESIA-Contract to provide
Billion prcurement, services to Newmont Gold Company of Denver and
construction, Sumitomo Corp. of Tokyo for the Batu Hijau project, a
project large copper/gold porphyry deposit with an estimated
management 11.2 billion pounds of copper and 14.7 million ounces
of gold. Total project cost is estimated at $1.6 billion.
9/24/96 Not Industrial Project Ongoing Pharma- SAN FRANCISCO, CALIFORNIA-Strategic
Disclosed management, ceutical engineering alliance with Genentech to provide
engineering, project-related engineering services to its
support staffing manufacturing, and research and development
services facilities. Genentech is a leading biotechnology
company that discovers, develops, manufactures and
markets human pharmaceuticals.
8/6/96 $5 Billion Govern- Program 2001 Environ- RICHLAND, WASHINGTON-Management of the
ment Management mental environmental cleanup at Hanford, the Department of
Energy’s former plutonium production facility. Fluor
Daniel and its 5 major subcontractors will assume full
site responsibility on October 1, 1996. Hanford is one
of the nation’s largest and most complex cleanup
efforts. Booking of the project will occur on an
annualized schedule.
22
LIST OF SIGNIFICANT NEWS RELEASES OF
FLUOR CORPORATION AND ITS SUBSIDIARIES
THROUGH JUNE 25, 1999
Headline Dateline Summary
Fluor Appoints Chief Irvine, CA Fluor Corporation announced that Ralph F. Hake has been elected by its board of
Financial Officer June 8, 1999 directors to the position of executive vice president and chief financial officer, effective
June 16. Hake’s 24-year career began with Mead Corporation where he quickly rose
through various functions to oversee the corporate development and planning activity. In
1987, he joined Whirlpool Corporation where he oversaw various corporate financial
functions including corporate controller, and most recently as senior executive vice
president and chief financial officer.He succeeds James O. Rollans, Fluor’s current chief
financial officer, who assumed the position of president and chief executive officer of
Fluor Signature Services in March of this year.
Fluor Board Declares Irvine, CA Fluor Corporation’s Board of Directors declared a quarterly cash dividend of 20 cents
Quarterly Dividend June 8, 1999 per share on the company’s common stock, payable on July 13, 1999 to holders of
record at the close of business on June 22, 1999.
Fluor Announces Irvine, CA Fluor Corporation announced a net loss of $72.9 million, or 97 cents per share, for the
Second Quarter May 26, 1999 second quarter ended April 30, compared with net earnings of $54.3 million, or 67 cents
Results per share for the same period a year ago.
Fluor Corporation Irvine, CA Fluor Corporation announced a strategy to significantly improve its profitability and
Unveils New Strategic March 9, 1999 growth potential. Speaking at the company’s annual meeting, Chairman and CEO Philip
Direction to Increase J. Carroll Jr., told shareholders the company is initiating actions designed to increase
Shareholder Value return on operating assets from 9 percent in 1998 to above 13 percent, with a
sustainable revenue growth rate of 10 percent within five years.
Fluor Board Declares Irvine, CA Fluor Corporation’s Board of Directors declared a quarterly cash dividend of 20 cents
Quarterly Dividend March 9, 1999 per share on the company’s common stock.
Fluor Announces First Irvine, CA Fluor Corporation announced net earnings of $51.1 million, or 68 cents per share, for the
Quarter Earnings February 17, 1999 first quarter ended January 31, compared with $54.8 million, or 66 cents per share, for
the same period a year ago.
Fluor Files Shelf Irvine, CA Fluor Corporation filed a shelf registration statement with the SEC for the sale of up to
Registration with SEC January 25, 1999 $500 million of debt securities. Proceeds from debt offerings under the shelf registration
will be primarily used to pay down short-term debt incurred during the company’s recently
completed share repurchase program.
AMECO Receives Irvine, CA American Equipment Co. received the first Associated Equipment Distributors’ (AED)
Health & Safety Award January 15, 1999 award for excellence and effectiveness in health and safety. AED is the trade association
for distributors and manufacturers of equipment used in construction, mining, logging,
public works and related industries. AMECO was honored by the AED Environmental,
Health and Safety Committee for the completeness of the company’s program, the
documentation of its procedures, involvement of all of its divisions and its impressive
results.
American Equipment Greenville, SC American Equipment Company announced that it obtained full ownership of Maquinaria
Acquires Full Interest in December 16, 1998 Panamericana, S.A. de C.V (MAPSA) from Grupo ICA on November 30, 1998 In June
Maquinaria 1997, AMECO acquired a majority share -- 65 percent -- of MAPSA from GRUPO ICA.
The transaction cost was not material.
Fluor Appoints Sr. VP Irvine, CA Fluor Corporation announced that Frederick J. Grigsby, Jr., 51, has been elected by its
of Human Resources December 10, 1998 board of directors to the position of senior vice president of Human Resources and
Administration. Grigsby started his 29-year business career with the Westinghouse
Electric Corporation. Since 1995, he has held the position of vice president, Human
Resources, for Thermo King Corp., a wholly owned subsidiary of Ingersoll-Rand.
Fluor Board Declares Irvine, CA Fluor Corporation’s Board of Directors declared a quarterly cash dividend of 20 cents
Quarterly Dividend December 9, 1998 per share on the company’s common stock.
Fluor Announces Irvine, CA Fluor Corporation announced net earnings of $235.3 million, or $2.97 per share, for the
FY1998 Results November 19, 1998 fiscal year ended October 31, compared with $146.2 million, or $1.75 per share, in
1997. Net earnings for the fourth quarter, ended October 31, were $63.8 million, or 84
cents per share, compared with $88 million, or $1.06 per share a year ago.
Fluor Appoints VP of Irvine, CA Fluor Corporation announced that George K. Palmer, 54, has joined the company as its
Corporate Relations November 10, 1998 vice president of Corporate Relations. Palmer has more than 30 years of experience in
public affairs; investor, media and community relations; crisis communications and
employee communications.
23
Headline Dateline Summary
Fluor Daniel to Sell GTI Irvine, CA Fluor Daniel announced that they have entered into an agreement to sell Fluor
Environmental to IT October 28, 1998 Daniel GTI, its Massachusetts-based environmental company, to The IT Group.
Under terms of the agreement, IT will acquire all outstanding shares in FDGTI for
$8.25 per share, in cash, including the 4.4 million shares, or about 52 percent,
owned by Fluor Daniel. Fluor Corp. will realize $36.3 million in proceeds from the
transaction with no material earnings impact.
Fluor Discontinues Irvine, CA Fluor Corporation announced that it has discontinued efforts to transact American
Efforts to Sell AMECO October 7, 1998 Equipment Company. The decision not to proceed resulted from a substantial
alteration by the leading bidder in the terms and conditions of the transaction in
response to perceived changes in external market circumstances.
Fluor Board Declares Irvine, CA Fluor Corporation’s Board of Directors declared a quarterly cash dividend of 20
Quarterly Dividend September 8, 1998 cents per share on the company’s common stock.
Fluor Announces Third Irvine, CA Fluor Corporation announced net earnings for the third quarter ended July 31,
Quarter Earnings August 19, 1998 1998 of $62.4 million, or 81 cents per share, compared with $66.2 million or 79
cents per share, for the same quarter a year ago. For the first nine months, net
earnings were $171.5 million, or $2.14 per share, compared with net earnings of
$58.1 million, or 70 cents per share for the same period last year.
Rollans to Replace Irvine, CA Fluor announced the departure of Michal Conaway, sr. vice president and CFO.
Conaway as CFO July 21, 1998 Conaway accepted a position as sr. executive and CFO with another corporation.
James Rollans will assume the position of CFO, a position he previously held with
Fluor.
Fluor Daniel Named Irvine, CA Fluor Daniel has been ranked the number-one E&C company in the U.S., based
T U.S. Contractor
op July 20, 1998 on total revenue, by Engineering New s-Record (ENR) magazine. In a field of 400
(ENR) general contractors, the company came in first for the fifth straight year and has
held this ranking for 10 of the past 11 years.
Fluor Board Declares Irvine, CA Fluor Corporation’s Board of Directors declared a quarterly cash dividend of 20
Quarterly Dividend June 9, 1998 cents per share on the company’s common stock.
Fluor Announces Irvine, CA Fluor Corporation announced net earnings of $54.3 million, or 67 cents per share,
Second Quarter May 20, 1998 for the second quarter ended April 30, compared with a net loss of $70.1 million,
Earnings or 84 cents per share for the same period a year ago For the first six months, net
earnings were $109.1 million, or $1.33 per share, compared with a net loss of
$8.1 million, or 10 cents per share, for the same period in 1997.
Philip J. Carroll Named Irvine, CA Fluor Corporation’s Board of Directors announced the election of Philip J. Carroll
Chairman and CEO April 15, 1998 as chairman and chief executive officer of Fluor Corporation, effective July 1998.
Carroll, 60, will retire as president and CEO of Shell Oil Company on June 30.
Fluor Board Declares Irvine, CA Fluor Corporation’s Board of Directors declared a quarterly cash dividend of 20
Quarterly Dividend March 10, 1998 cents per share on the company’s common stock.
Fluor to Pursue Irvine, CA Fluor Corporation announced that it will pursue options for transacting American
Transactional Options March 9, 1998 Equipment Company (AEC) its equipment sales, leasing and services subsidiary.
of American Equipment This decision to exit the business is the result of a thorough review of strategic
Company alternatives to increase shareholder value either through continuing ownership of
and investment in AEC, or by some form of divestiture or restructuring. Merrill
Lynch & Company will serve as Fluor’s financial advisor.
Fluor Ranked #1 E&C Irvine, CA Fortune magazine has identified Fluor Corporation as America’s most admired
Company in Fortune March 4, 1998 company in the engineering and construction industry in its March 2 issue. This is
the fifth straight year that Fluor has earned this top honor.
Fluor Announces First Irvine, CA Fluor Corporation announced net earnings of $54.8 million, or 66 cents per share,
Quarter Results February 18, 1998 for the first quarter ended January 31, 1998, compared with $62 million, or 74
cents per share for the same period a year ago.