Fluor 3rd-Quarter Profit Dips 2.8% From Last Year

IRVINE — Fluor Corp., still pushing to cut $100 million in operating costs by year’s end, said Wednesday that its fiscal third-quarter profit dropped 2.8% to $66.2 million from last year.

The quarterly profit, amounting to 79 cents a share, was down from last year’s third-quarter income of $68.1 million, or 81 cents a share. Revenue for the period ended July 31 rose 36%, however, to $3.7 billion from $2.7 billion on what the company called strong new business from several industry segments.

The company’s profit, though, was higher than most analysts had expected in the wake of its stunning $70.1-million loss for its second quarter. The strong performance pumped up the construction and engineering giant’s stock $1.94 a share to $57 in heavy New York Stock Exchange trading.

Fluor stunned investors earlier this year with the admission that it had let its expansion drive overshadow internal corporate controls. As a result, Fluor officials said, the company would have to swallow a total of $120 million in cost overruns on two major power plant projects.

The company pledged to overhaul its operations, rethink its business plan and slash operating costs.

In a statement Wednesday, the executive picked to direct the remaking of Fluor’s chief operating unit, Fluor Daniel, said everything was on track and according to plan.

“We have made significant progress in implementing Fluor Daniel’s $100-million cost reduction program and are beginning to see positive results,” said Jim Stein, Fluor Daniel’s president.

For the first nine months, the company reported a profit of $58.1 million, or 69 cents a share, compared with $189.2 million, or $2.24 a share, for the same period last year. Revenue through the first nine months was $10.3 billion compared with $7.7 billion last year.

“This is a good first step,” said industry analyst Michael Dudas of UBS Securities. He added, though, that he believes Fluor still is spending too much money courting new business.

Bloomberg News contributed to this report.