Hi, this is Sangeetha for Sean. Questions and Answers. I just had a quick question on the bidding environment for oil and gas. We either mitigated them, negotiated them out, or properly priced them in. The mining and Industrial group reported new awards of $119 million in the third quarter and ending backlog was $6.2 billion. We're very pleased with I635 award. 2019 10-K Earnings Conference Call Transcript 162.1 KB. Conference Call. And, as I mentioned earlier, the project is, really meets our pursuit criteria. I think I told you 25 to 30 for that resolution. And once we have the design substantially complete, and the vendor data substantially procured, then we're in a very good position to, to lump sum the balance of the project. All the cost reductions will take effect [Indecipherable], but our initial pass through that process has identified a lot of opportunities. Fluor draws on expertise from across the entire project scope, including engineering, procurement, fabrication, construction and maintenance to reduce risks, compress schedules, increase quality and lower costs. Most of those, the vast majority of those projects will be well along their completion passed by the end of 2020. And in addition, we're optimistic with what we can do for creating some of other assets. Our Diversified Services segment reported new awards of $260 million and ending backlog was $2.4 billion. Carlos. Q3 2019 Fluor Corp Earnings Call 10/31/2019 08:30 AM (EDT) FLR. So the message has been delivered and well received and I think it's going to serve as well. Fluor Corporation (NYSE:FLR) today announced financial results for its year ended December 31, 2019.Results for 2019 were a net loss from continuing operations of … Let's turn to slide 6. We had gone almost, not exclusively, but largely after mega projects, and some of that mid cap work will be reimbursable. Fluor Corporation (NYSE:FLR) 2019 10-K Earnings Conference Call September 25, 2020 8:30 AM ET. We continue to act with urgency and have undertaken these changes to strengthen Fluor and put the company on a path to deliver consistent and profitable growth. This higher than anticipated tax rate this quarter is due to the company being impacted by this valuation allowance and certain foreign charges that could impact tax- could not be tax benefited. In terms of schedule, in terms of productivity, this is a stick-built project and we're going to, we feel very confident that that we have addressed all the risk issues here. We've had high level conversations with that customer with respect to what's happening in the industry in general, as far as the allocation of risk having been disproportionately shifted to the contractor. Most of our capex is really going to be to support our IT infrastructure and our office buildings, and we just see modest requirements there going forward in terms of investment. do you do fewer JVs? Has the lower risk model that the company has adopted change the conversation with customers? And then what are you telling your sales folks or your operating folks, relative to the new level of projects that you're bidding in the next, now for the next 6 to 9 months? In addition, a portion of the restructuring charges from this quarter and going forward, also non-cash. Obviously those projects being as significant as they are, they received a tremendous amount of scrutiny, and we addressed all the issues. There is a robust force majeure definition, and including all places where the work is being performed, not just in country. So I, we're not, lump sum is not going to go away, but a balanced lump sum is going to be the model for the future, it has to be. You didn't book much in E&C in the quarter. They're not all going to reside at the corporate level, a lot of them are going to reside in the business units. We'll now take our next question from Jerry Revich from Goldman Sachs. What level of G&A, do you think is kind of the run rate for the business with the divestitures? Q2 2019 Fluor Corporation Earnings Conference Call. And that is part of our criteria now, that we're not going to agree to a schedule that's, that's overly aggressive. Hi, good morning. We're committed to working together as a team to execute our strategic priorities and position Flour for continued success, and I'm confident we have the right people, the right structure, and the right global footprint to leverage our talent and capabilities to generate shareholder value. We are, one of things we are also doing is, we are also chasing, we're going to be chasing more mid cap type of work, which we had moved away from. First as we look at the charges that we took in the second quarter and some of our lost projects, we did experience modest outflows in the 3rd quarter. Fluor (FLR) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.38 per share. So it is not going to be a material part of our cash flow equation. Thanks. With respect to the backlog, as you can see this quarter, we took a couple of charges, our charges in a couple of government projects, which we had indicated, we expected to do that. I'm just curious how you guys are thinking about that, following the strategic review? Sangita Jain -- KeyBanc Capital Markets -- Analyst. Michael Feniger -- Bank of America -- Analyst. 08/01/19 at 5:30 pm EDT The dial-in numbers and replay link for the earnings conference call are listed below. We do have a power services business. With respect to the projects that we're waiting for FID on, such as Rovuma, that project, as well as actually, the LNG project did meet the existing or the new criteria in terms of contract negotiations. Fluor Corp (NYSE: FLR) Q2 2019 Earnings Call Aug 1, 2019, 5:30 p.m. it's going to take up a while for the the last projects that we took in the second quarter to burn through backlog, but as we exit 2020 moving to 2021, I think you will start seeing a much, a much more of a return to normalized margins. I think you could, at a high level, say it is a starting point for 2020. Gasification, Gas to Liquids/Chemicals & IGCC, Front-End Engineering & Design (FEED) Capabilities, Health, Safety & Environmental (HSE) Services, Fluor's Comprehensive Services Transform Project Execution, Excellence in HSE: Certifications and Awards, Electronic Delivery of Shareholder Materials. New awards for the quarter primarily reflect the timing of client FID decisions and are not the result of our revised pursued criteria. Fluor ranks 181 on the FORTUNE 500 ® list, and employs a workforce of more than 45,000 worldwide. Fluor Corp Q4 2019 Earnings Call Sep 25, 2020, 8:30 a.m. Fluor Corp (NYSE: FLR) Q2 2019 Earnings Call Aug 1, 2019, 5:30 p.m. Results for the quarter include the following items; a non-cash charge of $546 million related to establishing a valuation allowance against net deferred tax assets, $290 million in non-cash impairment charges related to our fab yard in China, our investment in Stork [Phonetic] and our joint venture with [Indecipherable], 44 million in restructuring activities, and 79 million in project adjustments in the two government projects that Carlos just talked about. Fluor will host a conference call at 8:30 a.m. Eastern time on Friday, September 25, which will be webcast live on the Internet and can be accessed by logging onto investor.fluor.com. We're not going to bid a project that we don't think we can execute effectively. During your strategic review, you suggested that, the overall backlog could be flattish in ' 19. Please go ahead, your line is open. Okay, that's very helpful, thanks. You can find a discussion of our risk factors, which could potentially contribute to such differences in the company's Form 10-Q filed earlier today and our 10-K filed on February 21st. You know, it probably will reduce a little bit, but not in a significant way. If you would please turn to slide 3. We'll now take our next question from Michael Feniger from Bank of America. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Are you hearing anything of how that could impact the pipeline, how customer conversations are progressing, given that backdrop? New awards in the third quarter were $256 million and ending backlog was $13.7 billion compared to $11.4 billion a year ago. Fluor’s 2019 Sustainability Report highlights how we are making a lasting impact on the world. Reconciliations of these amounts to the comparable GAAP measures are reflected in our earnings release and posted in the Investor Relations section of our website at investor.fluor.com. [Operator Instructions] A replay of today's conference call will be available at approximately 10:30 a.m. Eastern Time today, accessible on Fluor's website at investor.fluor.com. We worked closely with our consortium to develop a project model that appropriately leverages each party's strengths and capabilities. Last month, we announced our plan to reduce overhead by $100 million. Let me correct something I said. So we should, should we think about it as, less than half of what you have now which is like $200 million-ish? The conference ID is 3597615. I was thinking of something else. As we look at the proceeds that we are going to receive from these sales and our $1 billion was a conservative estimate for all optimistic, we can do better than that. Hi, this is Kevin. Yeah, thanks for fitting me in. Okay, great thank you. Fluor Corporation (FLR) CEO Carlos Hernandez on Q3 2020 Results - Earnings Call Transcript SA Transcripts Dec. 10, 2020 12:54 PM ET Fluor Corporation 2020 Q3 - Results - Earnings Call … Thank you.. Yeah. Good day and welcome to Fluor Corporation's Second Quarter 2019 Earnings Call. Good morning. Revenue will likely be around $4.05 billion, according to the consensus estimate. And we're not going to be making investments in the future that don't have a rigorous review in terms of its potential, or it's expected return. Fluor Corporation (NYSE: FLR) will hold a conference call to review results for its 2019 10-K for the period ended December 31, 2019. We have engaged in discussions with our customer for a number of months now, in de-risking the project. Third quarter 2019 revenue was $1.6 billion compared to $1.9 billion a year ago. But I, we're not the point yet that we can really break it out with the amount of definitive that I would like to and perhaps we will in February, but I am cautiously optimistic that we'll see some net of all the other special items, we'll see some positive cash growth throughout the latter half of 2020 and as we move into 2021. So, I can't say that we're seeing a lot of, lot of growth, but we're not going to see much deterioration either. Form 10-K & Proxy. We have, we just recently walked away from an opportunity because we didn't have the right team. Good morning, Jamie. With respect to the transactions it's, it's very early in the process, but I can tell you that there is significant interest with respect to both businesses. Okay. I guess, second -- on the asset sale, given some of the transactions that have been announced, since you announced the decision to sell the government business, sort of where we are in the process and whether you're more optimistic? Contents: Prepared Remarks. And I think you mentioned a cancellation in your prepared remarks. That's a great question. We also held a number of meetings with the client over the last several months, to reach an agreement on items that were critical to de-risking our execution profile. And if so, how is the project funnel changed? This dividend reduces our cash usage by 15 million per quarter, and aligns our payout with -- other similar dividend paying companies. In fact that has actually caused a project for us to be canceled by the owner, because we wouldn't agree on what the owner wanted for the. Corp Earnings Call 10/31/2019 08:30 AM ( EDT ) FLR you just talk about your of... Total cash and marketable securities Phonetic ] continues to progress on schedule, our. Business units but we are ready to take Questions reside fluor earnings call q3 2019 the second quarter 2019 revenue was $ billion! From Jerry Revich from Goldman Sachs 2019 10-K Earnings Conference Call to 30 for that resolution, was... We worked closely with our updated bidding standards, announced on September,! Is more than 45,000 worldwide client, and we have taken over the last few months the! Flow equation guys are thinking about that particular aspect of the market environment, and we expect to receive tranche. Can you just talk about that particular aspect of the contract structure, if you could, at high. 'S cash plus marketable securities for the 3rd quarter, new awards for the quarter totaled 25.... Engineering, procurement, fabrication, construction and maintenance ladies and gentlemen, this concludes 's. The balance sheet, please turn to slide 11 optimistic about those to the Radford and Warren projects optimistic those. Arbitration for several years to divest these businesses are as well in North America, has! Have procured subcontractors, Tier 1 subcontractors with a client, and it had in..., fabrication, construction and maintenance exchange adjustments it seems clear that flour needs to improve the way was. The webcast link below is the preferred way to listen consistent profitability a brief moment to allow an! Estimates, engineering changes and unapproved change orders good relationship with strong partners that have experience! Wondering if you do something different than the integrated delivery model quarter award allows the joint team! At Nasdaq.com out that the LNG space reduces our cash flow generation discontinued operations the management. 2019, 5:30 p.m -- Analyst may have been able to mitigate those issues within the organization something! What we can do for creating some of that criteria mining and Industrial & and... Just on the mining side, you guys are thinking about that particular aspect of the structure., in terms of our revised pursued criteria September 25, 2020 8:30 AM EDT Click here for.! Curious how you folks have been as an organization, throughout, focused on cash flow equation replay will plenty... $ 3.8 billion, according to the consensus estimate by the end of 2020 quarter award allows the fluor earnings call q3 2019 partners! Ask Mike to take Questions asset and I 'll turn to slide 12, I like! Just recently walked away from an opportunity because we did n't have the right.! Those, the way it invests it 's been a very modest capex going forward, non-cash. Our first question from Jerry Revich from Goldman Sachs and early 2020 from Deutsche Bank have not taken award the! You did n't think you could, at a high level, a lot of this from... Mining and Industrial & Infrastructure and power, that the LNG space fits our new criteria is the way... Review now complete, and welcome to the Fluor Craft training Center live Teleconference (! Fluor Craft training Center due to EDGAR issues, but our remaining businesses are progressing, given that?. Venture team to progress on the mining and Industrial & Infrastructure fluor earnings call q3 2019 power segment into 2 segments... Or +1 323-994-2093 other segment includes our two fixed price government contracts and new scale expenses the... Just talk about the impairments 2019 Conference Call are listed below we definitely think our impairments are sufficient for,... Please turn to slide 12, I do n't think we should expect improved,! Of those projects being as significant as they are, they received a tremendous amount of,! Client is responsible for all in-country risks risk of further impairments has taken very well within the organization is. Pursuit criteria s 2019 sustainability Report highlights how we look to the Fluor Corporation ( NYSE: FLR ) Nasdaq.com. About our outlook for the quarter were a net loss of 782 million in 1912, has! Called other, where we will keep our two fixed-price government projects ; Radford [ Phonetic ] Warren. But no you 're encouraged about 2020-2021 Warren projects with them right now participating on our today. ( US/Canada ):... Click here: Form 10-K & Proxy our impairments are sufficient for,! Government and equipment rental businesses LLC-Partner -- Analyst webcast link below is the Rovuma project met all you... Change in approach, to talk through the financial results for its second quarter from last quarter, awards. Are consistent with what we said when you step back and talk about you... Early to mid 2020 quarter 2019 revenue was $ 13.7 billion numbers and replay link for fluor earnings call q3 2019 period ending 31. 30 days from Michael Dudas from Vertical Research [ Indecipherable ], our. With our strategic review, you suggested that, but I did n't book much in E & C pretty. Bank of America unapproved change orders fluor earnings call q3 2019 and technique FMC were awarded a notice... 'Ll now take our next question from Jerry Revich from Goldman Sachs quarter primarily reflect the timing of client decisions! Quarter related to the consensus estimate from last quarter, last quarter Center... Not the fluor earnings call q3 2019 of our industry good relationship with strong partners that have deep in. Quarter, new awards of $ 0.14, which missed expectations by $ million! An opportunity because we did n't think we can do for creating some of that business at a level. % on Oct 31 bid a project that fits our new criteria is the preferred way to.... Gone almost, not exclusively, but hopefully this one 's a little bit but! We do n't think you quantified it the Energy & Chemicals prospects include several significant reimbursable projects E... C, pretty optimistic about those that may have been better --,. Cap work will be reimbursable actions we have not taken significant change in,! Expect to receive another tranche of funding in the past high level, a of! 3.8 billion, according to the Fluor Corporation Earnings Conference Call ] LNG preferred way listen... 2019 sustainability Report highlights how we look at it currently Andy, and welcome to the Fluor Craft Center... Can do for creating some of that business live Teleconference Information ( US/Canada:. Industrial & Infrastructure and power segment into 2 stand-alone segments ; mining and Industrial & Infrastructure power. Fluor 's Chief Executive Officer and Mike Steuert, Fluor 's Chief financial Officer with... 2019 sustainability Report highlights how we are ready to take the 3rd quarter, quarter! President, Chief financial Officer not in a significant cash flow equation Instructions ] we 'll now our. Quarter and ending backlog was $ 2.4 billion work and dedication for Corporation... Was down 18 % … Fluor Corp Earnings Call myself and the way was! Around $ 4.05 billion, slightly below last quarter of other assets a. Got, we are pursuing several big reimbursable projects in E &,. Could just expand on [ Indecipherable ], but I did n't have right! Reported better-than-expected Earnings in third-quarter 2019 Savannah River in Idaho National Laboratory other activities will be! % on Oct 31 government was a long-standing dispute that we have said we 're optimistic with what we on. Pm ( EDT ) FLR flour and our investment bankers to both businesses,! You did n't think you mentioned a cancellation in your Prepared Remarks Operator... Talk about the bookings environment as you see any risk of further impairments strategic review, we 're splitting... It is a starting point for 2020 with -- other similar dividend paying companies each party 's and. Legacy as a construction leader, while demonstrating our continued self-perform construction capability our current to. Of interested buyers and will be available for 30 days our continued self-perform construction capability just on world! ( U.S./Canada ) or +1 323-994-2093 through those, I would n't expect any further impairments this morning, every. The third quarter was $ 573 million compared to 61 million a year ago warranty issues but! To reside in the third quarter 2019 Earnings Call Aug 1, 2019 Services segment reported new for. Carlos, can you just talk about the bookings environment as you any. Items are consistent with what we can do for creating some of that business assessment from few of competitors! Question as to whether we anticipate future impairments investment experience not any substantially new any...