Fluors Military Hopes – US-FOREX.US
Fluor will demonstrate Monday whether its government contracts have been paying off during the downturn.Over the past year, U.S. military contracts have been offered to Fluor
, DynCorp International
and KBR
, which recently said it’s expecting new contract awards for Iraq later this year or in early-2010.Wall Street is expecting the company to report quarterly earnings of 91 cents per share, slightly ahead of the 84 cents recorded in last year’s corresponding period. Since the beginning of the year, the company’s market value gained 24.1%, but its trading levels are still about half their year-ago value. Investors in Fluor, the largest publicly traded engineering company in the United States, should prepare for some possible bad news on Monday. In July, Jacobs Engineering Group
, the nation’s second-largest engineering firm, took a major hit on the stock market after it cut its full-year earnings outlook, citing expected contract terminations. The announcement was then followed by a downgrade from Goldman Sachs.Fluor has also experienced managerial shifts in its government-related business, having recently named Bruce Stanski, previously from KBR, as head of its government group. The move came less than a month after the U.S. Army chose DynCorp and Fluor over incumbent KBR for five-year contracts worth up to 7.5 billion each, to support troops in Afghanistan.