Fluor Corporation (FLR) received a contract for its technical assessment and project management services to support recovery efforts of the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) after national disasters. This Public Assistance Technical Assistance Contract from FEMA has a potential value of up to $500 million over five years. As work is received from FEMA it will be booked by Fluor into backlog.
FEMA has announced four service contracts of which one has already been received by Fluor. The Public Assistance Technical Assistance Contract is as per the legal requirements under the Robert T. Safford Disaster Relief and Emergency Assistance Act.
Fluor has been providing its technical support to the FEMA Public Assistance Program for the past 15 years.
Fluor’s new awards in 2011 were strong at $26.9 billion. The company benefits from substantial mining & metals volume, as well as sizeable orders within the Oil & Gas segment. Besides, consolidated backlog rose to a new year ending high of $39.5 billion, an increase of 13% from the end of 2010. The company’s international marketremained robust, with 84% of awards derived from outside the US with focus on Australia, the Middle East, Latin America and Canada.
Though the company maintained its 2012 earnings guidance and remains well positioned for growth in its diversified market, the prevailing uncertain market remains a matter of concern at least for the first half of the year.
Acting through its subsidiaries, Fluor Corporation is one of the largest professional services firms, providing engineering, procurement, construction and maintenance as well as project management services on a global basis. It serves a diverse set of industries worldwide, including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. It is also a primary service provider to the U.S. federal government. The company’s prime competitor is Jacob’s Engineering Group (JEC).
We continue to maintain a Neutral rating on Fluor Corporation, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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