Morningstar | Fluor's Execution Issues Continue
Fluor is one of the largest global providers of engineering, procurement, construction, fabrication, operations, and maintenance services. The firm serves a wide range of end markets including oil and gas, chemicals, mining, metals, and transportation. Fluor operates four core business segments: energy & chemicals (approximately 40% of 2018 sales); mining, industrial, infrastructure & power (27%); government (20%); and diversified services (13%).Fluor’s integrated solutions capability differentiates it from many rivals in the engineering & construction, or E&C, sector. The firm owns and operates fabrication yards in China and Mexico, and its fabrication and modular construction capabilities allow it to complete parts of large projects off-site and ship them in modules. This strategy gives Fluor flexibility and more control over costs when working in areas with scarce and expensive local labor. Furthermore, it allows the firm to work on projects located in remote areas where inclement weather or limited space would otherwise pose challenges. Fluor’s risk mitigation strategy also includes a shift toward more direct-hire construction (which reduces reliance on subcontractors) and enhanced data analytics.Fluor maintains an investment-grade debt rating and a cash-rich balance sheet, which have strategic importance as they can boost the firm’s competitiveness in securing new awards, particularly for large multi-billion dollar projects. Fluor’s integrated solutions capabilities and strong track record of project completions, coupled with its sturdy balance sheet, allow it to win bids for complex megaprojects, where competition is more limited and contracts more lucrative.In 2016, Fluor acquired Dutch-based maintenance and asset integrity firm Stork NV for $755 million. The deal has expanded Fluor’s integrated solutions capabilities, particularly operations and maintenance, and we expect Stork’s recurring revenue to lower the overall volatility of Fluor’s business.Fluor is a holding company. Through its subsidiaries, the company provides engineering, procurement, construction, fabrication and modularization, operations, maintenance and asset integrity, as well as project management services. The company serves a set of industries including oil and gas, chemicals and petrochemicals, mining and metals, transportation, power, life sciences and manufacturing. The company is also a service provider to the U.S. federal government and governments abroad; and it performs operations, maintenance and asset integrity activities for industrial clients. The company has four segments: Energy & Chemicals; Mining, Industrial, Infrastructure & Power; Diversified Services; and Government.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.