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| Fluor announces charges on fixed-price projects Fluor Corporation announced that its third quarter results, scheduled to be released on November 6, will include approximately $168 million in pre-tax charges for cost overruns on several fixed-price projects. Cost overruns in the company's Government segment include provisions of $133 million relating to certain United States embassy projects and $13 million on a construction project for the United States Air Force in Afghanistan. The company's Industrial and Infrastructure segment includes a provision of $22 million relating to a highway project in California. With regard to the embassy projects, the majority of the charge is for the estimated cost to complete the embassy in Haiti, although additional amounts were also recorded on the embassy projects in Kazakhstan and Jamaica. While the latter two projects are scheduled to be substantially completed and occupied by the end of December 2006, it is expected that construction of the facility in Haiti, which is approximately one-quarter complete, will continue for another 18 to 24 months. The company believes the underlying earnings potential of Fluor remains favorable, supported by continued strength in new awards and backlog. Additionally, for the third quarter, the company expects to report new awards of approximately $4.8 billion, resulting in growth in backlog to over $19 billion. For 2007, the company is issuing initial EPS guidance at a range of $3.50 to $3.80 per share. This range reflects the positive outlook in the oil, gas, petrochemical and infrastructure markets, and significant demands for new power generation. write your comments about the article :: © 2006 Construction News :: home page |