And then, are you actually in retrenchment mode? Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. In the Government group, results for the quarter include a charge of $233 million for a government project, on which the company serves as a subcontractor to a commercial client. Let me just comment on the several events that took place this quarter that resulted in the charge. Good afternoon, and welcome to the Fluor Corporation's First Quarter 2019 Earnings Conference Call. Some other -- or something else being driven by this? 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. All Rights Reserved. With respect to the strategic review that we're engaged in, as we said, everything's on the table. Another factor that we sometimes look at, and obviously, with respect to these estimates, there's a degree of judgment that is exercised, and we've tightened the assumptions a little bit. In my previous tenure as CEO, I hope that I earned a reputation for strong execution and transparent communications. 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. Obviously, resolving disagreements between sale, but could you give us more color into how you looked at your contracts differently? And I guess, Alan, to your point on the CEOs or the clients and the customer base, is this a secular -- I mean, this and cyclicality in risk transfer from contractor to client over the cycles. Aug. 1, 2019. With regard to the power projects, we have final agreements with our clients, where both sides are absolved from future liability other than standard warranty coverage. A telephone replay will also be available through 7:30 p.m. Eastern Time on August 8 through a registration link, also available on Fluor's website at investor.fluor.com. We also have -- and Carlos has done a really excellent effort in providing some pretty stringent selectivity criteria, and then enforcing that and working through the organizations to make sure that we are being much more highly selective on addressing these risks. But as we liquidate those assets, we'll have positive cash flow. 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. For example, where almost all the work is reimbursable. But we have noted significant increase in investor interest in NuScale, and we are pursuing discussions with other investors currently. [Operator Instructions] A replay of today's conference call will be available … Fluor Corp (NYSE: FLR) Q2 2019 Earnings Call Aug 1, 2019, 5:30 p.m. Alan? Wall Street expects a year-over-year decline in earnings on lower revenues when Fluor (FLR) reports results for the quarter ended June 2019. Fluor Corp (FLR) Q4 2019 Earnings Call Transcript. And Mike, if I could just squeeze a quick one in on cash. It has become apparent to me that there are a few significant and common issues in many of our challenged projects. Fluor Corporation's (FLR) CEO Carlos Hernandez on Q2 2019 Results - Earnings Call Transcript. Alan Boeckmann - Executive Chairman. In the last couple of weeks, for example, we have made decisions not to bid projects that we probably would have bid previously. Returns as of 01/14/2021. Fluor Corporation to Hold 2019 10K Earnings Conference Call. Yes. Stock Advisor launched in February of 2002. At this time, for opening remarks, I would like to turn the call over to Jason Landkamer, Director of Investor Relations. The amount that's profitable is a modest amount, given we are in those projects. One, just on the charges that you took on the problem projects, is there any way you can help us disclose the dollar amount of backlog, which is associated with the problem projects? Thanks for that call. 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 finally, we're evaluating the rest of our organization to see what offerings or end markets are not consistent with our goals to drive long-term value for our shareholders. These include ongoing disputes, pending change orders, schedule extensions, closeout items, unpaid receivables and our position on outstanding claims. Given the cash that we have on hand domestically, and our ability to repatriate foreign cash over time, and we have a lot of other actions that I mentioned -- we're going to -- starting right away, selling some excess real estate. ET Contents: Prepared Remarks; Questions and Answers; Call Participants; … A number of options are being explored as part of the strategic review. Well, that's certainly part of the derisking of that project that we have, our modules being built at the fabrication yard in China. If you would please turn to slide three. Consequently, we will not be providing guidance for 2019. We're also moving forward with the Formosa Sunshine project in Louisiana. Please turn to slide 15. Before getting started, I'd like to refer you to our safe harbor note regarding forward-looking statements, which is summarized on slide two. 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. At yesterday's board meeting, the Board formed a risk committee, led by Jim Hackett. I think we need to go through a strategic review and go through our fall assessment of 2020 and get more comfortable as we complete this year to be given -- giving guidance as a starting point for looking at next year. It requires additional work. We recently won a $263 million project with North Carolina Department of Transportation on Interstate 26 near Asheville. Do you still believe that we're in a project upsell? Thank you. We look forward to providing additional information on September 24 as it pertains to our strategic review and our process regarding portfolio rationalization. Please go ahead. But we have worked long and hard the last three months. And that's not to say that we won't be doing that for the next several quarters or -- to a project completion. Add to Apple Calendar; Add to Google Calendar; Add to Microsoft Outlook; Add to iCalendar; Earnings release; 10-Q (opens in new window) PDF; Our Company. Sorry. So while our backlog will probably increase a little bit in terms of lump-sum, it will be lump-sum that we feel comfortable with. Our Board absolutely recognizes the gravity of this announcement and has taken steps to improve our visibility into the contracting process, including the risks that we're assuming in new projects as well as how we are approaching and executing our existing risk projects. Okay. 0 shares: Share Tweet Save Post Send : You Might Like. While we still have a lot of work to do at Fluor, we ask for your patience as we ensure we are taking the right steps. Steve, they have worked their Chairman extremely hard. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Good afternoon and good evening everyone. To begin, I've made a number of changes to improve the effectiveness of Fluor's executive team. View Second Quarter 2019 Earnings Slides 1.1 MB. And on the cost growth side, we will probably see cash outflow. These two critical moves have given us significant leverage in assessing our situation and options. Fluor Corp (NYSE:FLR)Q2 2019 Earnings CallAug 1, 2019, 5:30 p.m. Sure. In addition, the cost of actions to be taken as a result of our ongoing strategic review may also negatively impact future quarters. Fluor Corp Q4 2019 Earnings Call Sep 25, 2020, 8:30 a.m. Or have a substantial portion of them effectively already been paid for via working capital growth? Can you talk about some project delays? There were profitable projects in infrastructure, as Carlos mentioned, where we took charges on, and there were a couple other one-off projects that were profitable when we reduced profitably going forward. I expect to do everything again. Fluor Corp () Q1 2019 Earnings Call May. At this time, all participants are in a listen-only mode. StreetInsider.com Top Tickers, 10/7/2020. And within the range of reasonableness, we got a little bit more conservative. Thank you. So obviously annoying to see that for yourselves. Download, follow and add "Fluor Corporation" earnings calls to your podcast at EarningsCast. 02, 2019, 5:30 p.m. ET. Please go ahead. You talked about COOEC. Company Participants. Or is that off the table at this point? 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. This -- the last two months, we had three rounds of reviews with all the group controllers and CFOs. So not all the actions that we took will result in negative cash flow. And it's no secret that the industry has suffered severely over the last couple of years given what has happened in shifting of risk from clients to contractors. I encourage all of you to put that date and time on your calendar. But the rest of the business, we should expect a modest improvement in margins this year, and that will continue into 2020 as we seek the rest of the business move through the backlog and get burned. We've talked to our project people. Questions and Answers. Contents: Prepared Remarks. Like Alan, I returned to Fluor based on my loyalty to the company, and along with Alan and Carlos, I'm committed to returning Fluor to industry-leading performance. To access the live webcast, log on to investor. And as a result of that, we're taking a charge of about $109 million and taking some positive -- and receiving some positive cash flow. NuScale has also signed MOUs to explore the deployment of its technology in a number of countries, and discussions are under way with other potential customers. Approximately half of which is available for drawings. Regarding our LNG Canada project, we're on track with the overall project schedule and budget. So we should handicap some of the major potential awards that are out there? Bloomberg the Company & Its Products The Company & its Products Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login Bloomberg Anywhere Login Bloomberg Customer Support Customer Support We still believe this facility provides flexibility and schedule certainty required to execute large, fixed-price contracts, most notably LNG Canada. First of all, on Tappan Zee, I believe we took a small charge this quarter. [Operator Instructions] We'll take our first question from Andy Kaplowitz with Citi. During third-quarter 2019, Fluor management planned to divest the company’s government and AMECO equipment businesses. All options are on the table, and we will tell you the results of this review on our September 24 call. I guess my concern is even though you're doing more modular construction for LNG Canada, are you being very watchful showing up all the expertise you need on ground? Or did you have to kind of rush it at all to kind of be prepared for today? 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. Further, the first significant tranche of our long-term debt does not mature until 2023. We didn't give out specific numbers, but some of the charges relate to cost growth. IRVING, Texas--(BUSINESS WIRE)--Sep. 22, 2020-- Fluor Corporation (NYSE: FLR) will hold a conference call to review results for its 2019 10-K for the period ended December 31, 2019. Fourth Quarter. Okay. We're going to actually be cashing in some insurance policy. Recognizing that today we have a lot to accomplish on this call, let me start by outlining the order of our presentation. We expect to include -- conclude our strategic review within the next 8 weeks and to explain our path forward in detail during a webcast on September 24 at 8:00 a.m. Eastern Time. Jacqueline and Kimberly discuss their hands-on instrumentation training at the Fluor Craft Training Center. Q1. And those were reestimated on that basis. Our restructuring will be substantially complete by the end of the year. You have heard us talk about the offshore project over the last two quarters and the challenges we have faced as a result of significant growth from a FEED package from others. Our priorities to accomplish this goal are cash flow generation; improving Fluor's cost profile and operating efficiency; and enhancing our return on investment through focused asset management. Our earnings announcement was released this afternoon. The project is expected to complete at the end of 2020. Sure, Jerry. Thank you, operator, and thanks to all of you for participating on our call today. Company Participants. We have already enacted changes in our bid/no bid process so that our future backlog will be comprised of high-quality projects with a contract structure and execution approach that will generate improved risk-adjusted margins. So typically, the other way to the tune of about $600 million or $700 million to the positive on assets. So we don't mean to avoid that question at all. This -- Jamie, this last three months, we've been incredibly busy working with our business unit lines, going through the backlog, addressing all of the risk projects. Results for the quarter include $669 million of project charges; $46 million for ongoing restructuring efforts in Diversified Services; $26 million for precontract cost; and $19 million for the elimination of embedded foreign currency derivatives related to the company's joint venture in Mexico. We are -- let's assume, for example, that we are awarded the Rovuma project in Mozambique. You may have seen some news articles about the MTA Purple Line project in Maryland and some challenges our joint venture has faced to keep this project progressing on schedule. And if it's possible, could you give us any examples of how you reestimated productivity on projects so we can understand the level of conservatism in your estimates? We'll take our last question from Andy Wittmann with Baird. I also recognize that our markets have changed, and I have personally observed that clients today have transferred significant risk and liabilities to contractors. Lastly, you'll hear from Mike Steuert, our Chief Financial Officer, as he provides a financial update and his initial priorities. With respect to the rest of the infrastructure projects, they're all small projects that we probably wouldn't have spoken about. But on the E&C business, I mean, does not mean -- can we get back to like a 5% to 6% margin in 2020? So we're going to push on that. Carlos M. Hernandez -- Chief Executive Officer. I knew you said there could still be more risk in our backlog -- in your backlog. Call Participants. This compares to earnings of $0.55 per share a year ago. We'll take our next question from Chad Dillard with Deutsche Bank. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Fluor Corp Q2 2017 Earnings Call Summary. We'll take our next question from Steven Fisher with UBS. And then, Alan, on LNG Canada, given what you guys have seen so far, it's too early to possibly get comfortable with that project. Please go ahead. All Rights Reserved. I actually think that's good for us. However, there are a couple of cost estimates we can guide to. But we do have to be disciplined. Image source: The Motley Fool. Results also include additional charges totaling $87 million, resulting from schedule-driven cost growth and client and subcontractor negotiations on two fixed-price, downstream projects as well as scope reductions on a large upstream project. Fluor Corporation 2019 Q1 - Results - Earnings Call Slides. We believe this committee will enhance the Board's exercise of its duties in keeping with our mandate of good corporate governance. But there are some charges associated with projects that will actually result in positive cash flow. With respect to the government project, for example, we have a number of change orders that are outstanding, and we met with the client and made a judgment as to whether we should take the charge at this time, and we decided that we should. I think we'll see modest improvement this year and modest improvement next year. We have Mark Fields, who was there two days or three days after he got appointed Head of E&C. Earnings Preview: Fluor (FLR) Q2 ... reports results for the quarter ended June 2019. Please go ahead. Tahira Afzal -- KeyBanc Capital Markets -- Analyst. Event Details Date: May 2, 2019 5:30 pm – 6:30 pm Categories: Conference Calls 888-254-3590 Conference ID: 9132841 Listen to Webcast Consortium was awarded a four-year framework agreement for plant turnaround services for several structures. Earlier, we have in this case, we believe the business be. Debt there, not given the size of the foreign domiciled cash wonder you. See, this was a comprehensive assignment Jason Landkamer — Director, Investor Relations for participating on Call. Q1 Earnings Call 05/02/2019 05:30 PM ( EDT ) FLR share a year.. Street will wonder whether you actually in retrenchment mode how much revenue does represent! 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