<PAGE>
Exhibit 99.1
Fluor Announces FY2000 Results
ALISO VIEJO, Calif., Nov. 21 /PRNewswire/ -- Fluor Corporation (NYSE: FLR -
---
news) today announced earnings from continuing operations, before unusual items,
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for its fourth quarter ended October 31, 2000, of $34.1 million, or $.45 per
share, compared with $33.6 million, or $.44 per share in 1999. As a result of
its anticipated spin-off to shareholders, A.T. Massey results were reported as
discontinued operations. Excluding spin-off transaction expenses, Massey
reported a net loss from operations in the fourth quarter of $4.6 million, or
$.06 per share, compared with net earnings of $22.9 million, or $.30 per share
in 1999. Results for consolidated operations for the quarter were a net loss of
$12.7 million, or $.17 per share, compared with net earnings of $75.8 million,
or $1.00 per share a year ago. Revenues from continuing operations were $2.3
billion for the fourth quarter, compared with $2.6 billion in 1999.
For the year, earnings from continuing operations, before unusual items, were
$118.4 million, or $1.55 per share, compared with $127.2 million, or $1.68 per
share in 1999. Earnings from discontinued operations, before unusual items, were
$36.9 million, or $.48 per share, compared with $77.5 million, or $1.02 per
share, last year. Net earnings of the consolidated operations in 2000 were
$123.9 million, or $1.62 per share, compared with $104.2 million, or $1.37 per
share in 1999. Revenues from continuing operations were $10.0 billion for the
year, compared with $11.3 billion in 1999.
The fourth quarter 2000 results were impacted by the following unusual items:
-- As previously announced, a pretax charge of $25 million ($17.2 million
after-tax, or $.23 per share), was included in Fluor Global Services'
operating results. This charge was taken to adjust to fair value the
accounts receivable and equipment inventory of the dealership operations
of AMECO, Fluor's heavy equipment business. In October 2000, the company
announced its decision to divest these dealership operations.
-- Discontinued operations included previously announced transaction expenses
related to the Massey spin-off of $25 million, or $.33 per share.
Fiscal year 2000 results were additionally impacted by:
-- A credit in the second quarter for the reversal of an $17.9 million
after-tax impairment allowance, or $.23 per share, originally recognized
as part of the special provision in the second quarter of 1999. The
reversal related to the company's decision to retain
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ownership of its current office located in Camberley, United Kingdom.
-- A $19.3 million, or $.25 per share, after-tax charge in the second
quarter, as a result of a write-off of certain assets and a loss on the
sale of interests in a European-based consulting business. This charge was
included in Fluor Global Services' operating results.
-- Discontinued operations included a pretax credit recorded in the third
quarter of $12 million ($8.5 million after-tax, or $.11 per share) from
the recovery of excise taxes paid on coal export sales tonnage and related
interest income of $5.3 million ($3.7 million after-tax, or $.05 per
share).
Fiscal 1999 fourth quarter results were impacted by the following:
-- A $19.3 million, or $.26 per share, reversal of the special provision
taken in the second quarter of 1999.
Fiscal year 1999 results additionally included:
-- A special one-time pretax provision of $136.5 million recorded in the
second quarter in connection with the new strategic direction to enhance
shareholder value and improve profitability and growth.
"Fluor accomplished a number of significant milestones related to its
transformation into a knowledge-based diversified services company," said Philip
J. Carroll Jr., Fluor's chairman and chief executive officer. "The spin-off of
Massey is nearly complete, actions to implement the sale of AMECO dealership
assets are in process, and our business model and account management system are
producing positive trends in new awards and backlog at higher margin levels.
Additionally, a major step was achieved in October 2000 with the initial
implementation of Fluor's new enterprise-wide management information system
based on SAP technology."
Importantly, consolidated new awards for the year increased 42 percent to $9.6
billion from $6.8 billion in 1999. As a result, consolidated backlog grew 10
percent to $10.0 billion from $9.1 billion last year, the first positive change
in backlog in three years. Gross margin in backlog improved to 6.2 percent from
5.0 percent a year ago and should translate into higher future earnings.
Fluor Daniel
For the fourth quarter of 2000, Fluor Daniel, the company's engineering,
procurement and construction (EPC) business, reported operating profit of $45.3
million, compared with $32.2 million in 1999. Operating profit for the year was
$127.7 million, including a pretax provision of $60 million for a project cost
overrun. This compares with $160.4 million earned last year. The operating
margin for this year, excluding the
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project provision, increased to 2.7 percent from 1.9 percent a year ago, despite
a 17 percent decline in revenues.
New awards for Fluor Daniel were $1.9 billion for the fourth quarter and $6.1
billion for the year, compared with $901 million and $4.8 billion, respectively,
for the same periods in 1999. Fluor Daniel's backlog was essentially level at
$6.7 billion with a year ago, but was up 8 percent from the third quarter. Gross
margin in backlog increased to 6.1 percent from 4.6 percent at the end of 1999.
The sequential improvement in backlog and increased trend in gross margin
reflect a strengthening business environment and the positive benefits of
increased selectivity.
Fluor Global Services
Fluor Global Services reported operating profit of $5.2 million for the quarter
including the $25 million AMECO dealership charge, and operating profit of $76.6
million for the year, including an additional nonrecurring charge of $19.3
million related to disposition of a European consulting business recorded in the
second quarter. This compares with $35.3 million and $91.7 million,
respectively, for the same periods in 1999. The operating margin for the year,
excluding the nonrecurring and AMECO charges, increased to 4.1 percent from 3.1
percent a year ago.
New awards for Fluor Global Services were $1.3 billion for the quarter and $3.6
billion for the year, compared with $1.0 billion and $2.0 billion, respectively,
for the same periods last year. Backlog for Fluor Global Services increased 38
percent to $3.3 billion, compared with $2.4 billion a year ago. Backlog gross
margin rose to 6.3 percent from 6.1 percent last year.
Fluor Signature Services
Fluor Signature Services completed a successful first year of operations.
Surpassing its goal of break-even performance, Fluor Signature Services achieved
operating profit of $697,000 for the quarter and $1.4 million for the full year.
Having significantly reduced the costs of delivering its business and
administrative services to Fluor operating units, Fluor Signature Services will
additionally begin offering services to external clients and reducing Fluor's
ownership of real estate assets.
Massey
A.T. Massey, which is being accounted for as a discontinued operation in
anticipation of its spin-off as a separate publicly
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traded company from Fluor, reported operating profit of $3.5 million for the
fourth quarter and $104.9 million for the year, compared with $42.8 million and
$146.9 million, respectively, for the same periods of 1999. Revenues for the
year were $1.09 billion, compared with $1.08 billion in 1999. As previously
disclosed, included in Massey's fourth quarter results is an impairment charge
of $10 million relating to development costs of a longwall panel at Massey's
Upper Cedar Grove operations, and a $3 million charge for estimated costs, net
of insurance, relating to a slurry spill at its Martin County operations.
Massey's fourth quarter results were further negatively impacted by the
bankruptcy of a major steel industry customer, resulting in a reserve to bad
debt expense of $7.1 million. Included in Massey's fiscal year results was the
nonrecurring pretax credit from the recovery of excise taxes paid and related
interest on coal export sales tonnage.
The charge relating to the Martin County slurry spill represents an accrual of
$46.5 million in estimated spill-related clean up costs and liabilities, net of
$43.5 million in probable insurance recoveries. The spill occurred on October
11, 2000, when a partial failure of a slurry impoundment allowed coal refuse
slurry to enter adjacent underground mine workings and then two tributary
streams of the Big Sandy River in eastern Kentucky. Clean up efforts are well
underway. As of November 15, 2000, approximately $10 million in clean up
expenses had been incurred. Several lawsuits have been brought by downstream
residents and other individual plaintiffs claiming to be damaged by the spill.
These suits assert trespass, property damage, nuisance and other claims, and
seek compensatory and punitive damages. Certain of these suits seek to be
certified as class action lawsuits. The company has insurance coverage it
expects to be applicable to such lawsuits. However, these lawsuits are in their
initial stages and, therefore, the extent of ultimate liability, if any, and
insurance recovery cannot be accurately predicted at this time. In addition, the
company may face assessment of fines and penalties by government authorities
which may not be covered by insurance.
Outlook
"We are encouraged that the 'new' Fluor Corporation will be able to deliver
improved results in 2001 in the key drivers of shareholder value -- increasing
revenues, net earnings growth, higher profit margins and return on capital,
along with positive cash flows," Carroll said. "The strengthening external
business environment and refocusing of the corporation's resources to capitalize
on growth opportunities for knowledge-based services are expected to position
Fluor to enhance shareholder value."
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As previously announced, following the spin-off of Massey, the "new" Fluor will
change to a calendar fiscal year in 2001. As a requirement of this change, Fluor
will report results for November and December 2000 as a separate stub period.
With revenues from continuing operations in 2000 of $10 billion, Fluor
Corporation provides services on a global basis in the fields of engineering,
procurement, construction, maintenance, operations, project management and
business services.
NOTE REGARDING SPIN-OFF:
As reflected in the Proxy Statement dated November 1, 2000, the actual legal
form of the spin-off transaction referred to in this press release will involve
the spin-off of "new" Fluor by Fluor Corporation, with Fluor Corporation
changing its name to "Massey Energy Company." This press release refers to the
pending spin-off of Massey because that is how the spin-off will be treated for
financial reporting purposes.
NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The foregoing release contains forward-looking statements regarding projected
earnings levels, cost reductions, new awards and backlog levels and the
implementation of strategic initiatives. Such forward-looking statements reflect
current analysis of existing information.
Caution must be exercised in relying on forward-looking statements. Due to known
and unknown risks, the Company's actual results may differ materially from its
expectations or projections. Factors potentially contributing to such
differences include, among others:
Changes in global business, economic, political and social conditions;
The Company's failure to receive anticipated new contract awards;
Customer cancellations of, or scope adjustments to, existing contracts;
Difficulties or delays incurred in the execution of construction
contracts resulting in cost overruns or liabilities;
Customer delays or defaults in making payments;
Fluctuations in the demand for, and price of, coal and other natural
resource commodities;
Difficulties and delays incurred in the implementation of strategic
initiatives; and
Competition in the global engineering and construction industry.
Greater than expected environmental costs and liabilities.
The forward-looking statements are also based on various operating assumptions
regarding, among other things, overhead costs and employment levels that may not
be realized.
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While most risks affect only future costs or revenues anticipated by the
Company, some risks may relate to accruals that have already been reflected in
earnings. The Company's failure to receive payments of accrued amounts could
result in a charge against future earnings.
Additional information concerning these and other factors can be found in press
releases as well as Fluor's public periodic filings with the Securities and
Exchange Commission, including the discussion under the heading "Item 1.
Business -- Other Matters -- Company Business Risks" in Fluor's Form 10-K for
its fiscal year ended October 31, 1999, and in Fluor's Definitive Proxy
Statement on Schedule 14A that was filed with the Securities and Exchange
Commission on September 21, 2000. Such filings are available either publicly or
upon request from Fluor's Investor Relations Department: (949) 349-3909. Fluor
disclaims any intent or obligation to update its forward-looking statements.
For further information, please contact: Media Relations, Keith Karpe, 949-349-
7661, or Investor Relations, Lila Churney, 949-349-3909, or fax, 949-349-5375,
both of Fluor Corporation.
FLUOR CORPORATION
CONSOLIDATED FINANCIAL RESULTS
(in millions, except per share amounts)
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<CAPTION>
FOURTH QUARTER (Unaudited) 2000 1999
<S> <C> <C>
Revenues $ 2,308.6 $ 2,583.8
Costs and Expenses:
Cost of Revenues 2,259.7 2,518.0
Special Provision -- (19.3)
Corporate G&A 20.1 14.8
Net Interest 4.9 1.7
Total Costs and Expenses 2,284.7 2,515.2
Earnings from Continuing Operations
before Income Taxes 23.9 68.6
Income Tax Expense 7.0 15.7
Earnings from Continuing Operations * 16.9 52.9
Earnings (Loss) from Discontinued Operations (29.6) 22.9
Net Earnings (Loss) * $ (12.7) $ 75.8
Basic Earnings (Loss) per Share
Earnings from Continuing Operations $ .22 $ .70
Earnings (Loss) from Discontinued Operations (.39) .30
Net Earnings (Loss) (.17) 1.00
Weighted Average Shares 75.0 75.4
Diluted Earnings (Loss) per Share *
Earnings from Continuing Operations $ .22 $ .70
Earnings (Loss) from Discontinued Operations (.39) .30
Net Earnings (Loss) (.17) 1.00
Weighted Average Shares 76.4 76.1
New Awards $ 3,283.8 $ 1,865.7
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<TABLE>
<S> <C> <C>
New Awards Gross Margin (%) 7.1 7.4
Backlog - October 31 $10,012.2 $ 9,142.0
Backlog Gross Margin (%) 6.2 5.0
Work Performed $ 2,120.4 $ 2,370.1
Supplemental Earnings, excl. unusual items:
*Earnings from Continuing Operations $ 34.1 $ 33.6
*Net Earnings $ 29.6 $ 56.5
*Earnings from Continuing Operations
per Share (Diluted) $ .45 $ .44
*Net Earnings per Share (Diluted) $ .39 $ .74
FISCAL YEAR (Unaudited) 2000 1999
Revenues $ 9,970.1 $11,334.4
Costs and Expenses:
Cost of Revenues 9,765.8 11,083.0
Special Provision (17.9) 117.2
Corporate G&A 65.3 55.4
Net Interest 14.7 2.2
Total Costs and Expenses 9,827.9 11,257.8
Earnings from Continuing Operations
before Income Taxes 142.2 76.6
Income Tax Expense 42.4 49.9
Earnings from Continuing Operations * 99.8 26.7
Earnings from Discontinued Operations 24.1 77.5
Net Earnings * $ 123.9 $ 104.2
Basic Earnings per Share
Earnings from Continuing Operations $ 1.33 $ .35
Earnings from Discontinued Operations .32 1.03
Net Earnings 1.65 1.38
Weighted Average Shares 75.3 75.3
Diluted Earnings per Share *
Earnings from Continuing Operations $ 1.31 $ .35
Earnings from Discontinued Operations .31 1.02
Net Earnings 1.62 1.37
Weighted Average Shares 76.4 75.9
New Awards $ 9,644.2 $ 6,789.4
New Awards Gross Margin (%) 6.9 7.4
Work Performed $ 9,230.2 $10,457.5
Supplemental Earnings, excl. unusual items:
*Earnings from Continuing Operations $ 118.4 $ 127.2
*Net Earnings $ 155.3 $ 204.7
*Earnings from Continuing Operations
per Share (Diluted) $ 1.55 $ 1.68
*Net Earnings per Share (Diluted) $ 2.03 $ 2.70
</TABLE>
FLUOR CORPORATION
<TABLE>
<CAPTION>
SELECTED BALANCE SHEET ITEMS
($ in millions, except per share amounts) (Unaudited)
10/31/2000 10/31/1999
<S> <C> <C>
Cash and Securities $ 70.5 $ 209.6
Total Current Assets 1,839.4 1,910.2
Total Assets 4,849.5 4,886.1
Total Short-term Debt 445.9 247.9
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<TABLE>
<S> <C> <C>
Total Current
Liabilities 2,093.0 2,204.3
Long-term Debt $ 317.6 $ 317.6
Total Debt to
Capitalization % 32.2 26.3
Shareholders' Equity $ 1,609.3 $ 1,581.4
Shareholders' Equity
per Share $ 21.24 $ 20.80
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STRATEGIC BUSINESS ENTERPRISE FINANCIAL REVIEW
($ in millions) (Unaudited)
<TABLE>
<CAPTION>
4Q00 4Q99 FY 00 FY 99
<S> <C> <C> <C> <C>
Fluor Daniel
Revenues $ 1,553.7 $1,804.6 $ 6,997.8 $8,402.9
CFM Revenues 504.6 716.4 2,009.3 3,125.2
Gross Margin % 6.1 6.7 5.1 5.7
Operating Profit $ 45.3 $ 32.2 $ 127.7 $ 160.4
Operating Margin % 2.9 1.8 1.8 1.9
New Awards $ 1,947.2 $ 901.4 $ 6,075.1 $4,757.3
New Awards Gross
Margin % 8.0 8.0 6.9 7.2
Backlog $ 6,729.7 $6,769.6 $ 6,729.7 $6,769.6
Backlog Gross
Margin % 6.1 4.6 6.1 4.6
Total Assets $ 947.6 $1,016.8 $ 947.6 $1,016.8
Fluor Global Services
Revenues $ 749.8 $ 779.2 $ 2,953.4 $2,931.5
Gross Margin % 10.0 10.3 9.9 9.4
Operating Profit $ 5.2* $ 35.3 $ 76.6* $ 91.7
Operating Margin % 0.7 4.5 2.6 3.1
New Awards $ 1,336.6 $ 964.3 $ 3,569.1 $2,032.1
New Awards Gross
Margin % 5.8 6.4 6.8 7.8
Backlog $ 3,282.5 $2,372.4 $ 3,282.5 $2,372.4
Backlog Gross
Margin % 6.3 6.1 6.3 6.1
Total Assets $ 971.2 $1,041.3 $ 971.2 $1,041.3
Fluor Signature Services
Revenues** $ 5.1 $ -- $ 18.9 $ --
Operating Profit 0.7 -- 1.4 --
Total Assets $ 447.8 $ 454.4 $ 447.8 $ 454.4
Massey Coal (Discontinued
Operation)
Revenues $ 288.5 $ 288.8 $ 1,085.8 $1,083.0
Operating Profit 3.5 42.8 104.9*** 146.9
Operating Margin % 1.2 14.8 9.7 13.6
Net Earnings (Loss) (29.6)**** 23.0 24.1**** 77.5
Total Assets $ 2,145.6 $1,956.4 $ 2,145.6 $1,956.4
</TABLE>
* Includes unusual charges of $25 million for the fourth quarter and
$44 million for the fiscal year.
** External revenues only.
*** Includes a nonrecurring benefit of $12 million.
**** Includes spin-off transaction costs of $25 million.
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FLUOR CORPORATION
Supplemental Fact Sheet
BACKLOG TRENDS
(in millions)
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<CAPTION>
Fluor Daniel Q400 Q499 % Chg
<S> <C> <C> <C> <C> <C>
Chemicals &
Life Sciences $1,078 16% $1,964 29% -45%
Oil, Gas & Power 3,650 55% 2,583 38% 41%
Mining 964 14% 657 10% 47%
Manufacturing 706 10% 1,170 17% -40%
Infrastructure 332 5% 396 6% -16%
Total Fluor Daniel $6,730 100% $6,770 100% -1%
United States $2,968 44% $2,870 42% 3%
The Americas 2,788 41% 2,058 30% 35%
Europe, Africa and
the Middle East 448 7% 1,062 16% -58%
Asia Pacific 526 8% 780 12% -33%
Total Fluor Daniel $6,730 100% $6,770 100% -1%
Fluor Global Services
Federal Services $765 23% $ 710 30% 8%
Operations &
Maintenance 1,571 48% 1,127 48% 39%
Telecommunications 946 29% 525 22% 80%
Consulting Services
& Other -- 0% 10 0% -100%
Total Fluor
Global Services $3,282 100% $2,372 100% 38%
United States $2,712 82% $2,137 90% 27%
The Americas -- 0% 5 0% NM
Europe, Africa and
the Middle East 414 13% 12 1% NM
Asia Pacific 156 5% 218 9% -28%
Total Fluor
Global Services $3,282 100% $2,372 100% 38%
Total Backlog $10,012 $9,142 10%
</TABLE>
NEW AWARDS
(in millions)
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<CAPTION>
Fluor Daniel Q400 Q499 % Chg FY 00 FY 99 % Chg
<S> <C> <C> <C> <C> <C> <C>
Chemicals &
Life Sciences $291 $240 21% $759 $1,211 -37%
Oil, Gas & Power 1,406 481 192% 3,649 2,599 40%
Mining 8 14 -43% 691 26 NM
Manufacturing 242 147 65% 807 785 3%
Infrastructure -- 20 NM 169 136 24%
Total Fluor Daniel $1,947 $902 116% $6,075 $4,757 28%
Fluor Global Services
Federal Services $763 $549 39% $800 $582 37%
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Operations &
Maintenance 539 408 32% 1,660 772 115%
Telecommunications 33 5 NM 1,099 646 70%
Consulting Services
& Other 2 2 0% 10 32 -69%
Total Fluor
Global Services $1,337 $964 39% $3,569 $2,032 76%
Total New Awards $3,284 $1,866 76% $9,644 $6,789 42%
</TABLE>
MASSEY COAL (DISCONTINUED OPERATION)
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<CAPTION>
TONS SOLD
in thousands Q400 Q499 % Chg FY 00 FY 99 % Chg
<S> <C> <C> <C> <C> <C> <C>
Steam 6,913 6,420 8% 26,183 22,916 14%
Metallurgical 3,665 3,883 -6% 14,059 14,948 -6%
Total 10,578 10,303 3% 40,242 37,864 6%
<CAPTION>
PRICE ($/TON)
average realized
prices Q400 Q499 % Chg FY 00 FY 99 % Chg
<S> <C> <C> <C> <C> <C> <C>
Steam $25.24 $25.55 -1% $24.67 $25.83 -4%
Metallurgical 30.52 31.50 -3% 30.67 32.34 -5%
</TABLE>
NM = Not Meaningful
