Fluor Corporation. Fall Investor Meetings November 9-10, 2006

Transcription

1 Fluor Corporation Fall Investor Meetings November 9-10,

2 Safe Harbor Statement Any forward-looking statements made in this presentation represent management s best judgment as to what may occur in the future. However, the company s actual results for the current and future fiscal periods and the corporate developments will depend on a number of economic, competitive and other factors including some of which will be outside the control of the company. Such factors could cause the company s actual results for future periods to differ materially from those expressed in any forward-looking statements made in this presentation. Information concerning those factors is available in our Form 10-K filed on March 1, 2006 and Form 10-Q filed on November 6,

3 Fluor Profile A leading Engineering, Procurement, Construction and Maintenance Services (EPCM) company Global presence with over 40,000 employees Broadly diversified across energy, industrial and government markets Legacy of executing complex projects in difficult locations Well positioned to capitalize on current E&C upturn, especially in Oil & Gas and Power 3

4 Fluor s Competitive Position Global presence, experience and reputation Full spectrum of solutions from Front-End Engineering and Design (FEED) to full EPCM and Project Management Rigorous risk assessment and risk management processes Strong financial position can support substantial growth Only A rated E&C company 4

5 Global Business Segments Oil & Gas Industrial & Infrastructure Power Global Services Government Revenue Last 9 Months $10.4 Billion Backlog $19.8 Billion 5

6 Growth Opportunities -- Highlights Oil, Gas and Petrochemical work in Middle East Refinery upgrades and oil sands in North America Mining expansions in South America and Asia Infrastructure programs in U.S. and Europe Coal-fired power plants and emissions control work in U.S. Nuclear remediation work outside of U.S. 6

7 New Awards & Backlog New Awards 5.8 Backlog Q06 $ in Billions 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06

8 Third Quarter Highlights Strong profit contributions from Oil & Gas and Global Services $1.7 billion increase in backlog to record $19.8 billion Major awards in the quarter include: Petrochemical plant in Saudi Arabia Copper mine in Arizona Extension of Hanford nuclear remediation contract Scrubber project for coal-fired power plant in Kentucky $430 million in operating cash flow 8

9 YTD Financial Performance Nine Months Ended ($ in millions, except EPS) 9/30/05 9/30/06 Revenue $ 9,198 $ 10,445 Net Earnings EPS New Awards 9,114 14,372 Backlog $ 14,662 $ 19,790 9

10 Key Financial Statistics ($ in millions, except per share) 12/31/05 9/30/06 Cash and Securities $ 789 $ 895 Debt to Total Capital 21% 22% Annual Dividend per Share $ 0.64 $ 0.80 Return on Equity 16% 15% 10

11 Earnings Per Share From Continuing Operations $3.50-$3.80 $2.13 $2.23 $2.25 $2.62 $2.40-$2.60 $ (est) 2007 (est) 11

12 Fluor Corporation Segment Updates 12

13 Government Billions $1.5 $1.5 Backlog $1.4 $0.9 Serving Departments of Energy, Defense, State and Homeland Security Successful completion of nuclear remediation/site closure work at Fernald Two year extension of Hanford DOE contract Contingency operations for U.S. Military (e.g. LOGCAP) Katrina work for FEMA complete, new two year contract in place Q

14 Government Embassy Update: $133 million in charges related to certain United States embassy projects taken in third quarter Majority of charge related to embassy in Haiti All sites essentially complete except Haiti, which will continue for another 18 to 24 months Fluor has not pursued any other embassy work since the Haiti award in 2005, and has exited the business No longer pursuing fixed-price contracts in the Government group 14

15 Global Services Steady long-term growth in Operations & Maintenance Backlog Growth strategy focused on leveraging existing EPC client base and global scope Billions $1.8 $2.3 $2.5 $2.4 AMECO construction equipment and services complement EPCM business Fast, flexible ramp-up with TRS temporary staffing Leveraging global procurement and construction services across Fluor Q

16 Industrial & Infrastructure Markets September 30, 2006 Backlog - $5.3 Billion Life Sciences Transportation/ Infrastructure Mining Telecommunications and Other 16

17 Industrial & Infrastructure Backlog Mining copper, iron ore, gold bookings continue Billions $2.9 $5.1 $3.9 $5.3 Large public/private financed transportation projects in pipeline Major contracts this year include Oakland Bay bridge and WTC transport hub Life Sciences opportunities returning Q 2006 Telecommunications mainly in the U.K. 17

18 Power Billions Backlog $1.1 $1.1 $0.6 $ Q 2006 Current cycle focused on adding baseload coal-fired capacity Fluor offers EPC, Commissioning and Start-Up Backlog includes major FGD project and EPC of 200 MW coal-fired plant Fluor providing initial EPC services on two 800 MW coal-fired units for TXU Market for scrubber/betterment work growing Positioning for nuclear build in U.S. 18

19 Oil & Gas Billions Backlog $10.1 $6.0 $5.4 $ Q 2006 Capital investment to satisfy global demand continues Fluor leveraging decades-long presence in Middle East Few E&C companies have the resources and scale needed for major projects Significant activity in Petrochemicals major projects moving forward Upstream activity focused on Oil & Gas processing and LNG Downstream focused on oil sands, refinery expansions and upgrades 19

20 Oil & Gas Backlog Composition September 30, 2006 Backlog - $10.1 Billion Downstream Upstream Petrochemicals Middle East North America Europe & Africa 20

21 Strong Oil, Gas & Petrochemical Demand Major factors impacting current capital investment cycle: World oil & gas demand outpacing existing industry production capacity New production capacity requires substantial industry investment Widening gap in U.S. natural gas supply/demand curves Global refining capacity utilization high; global demand increasing Substantial annual growth in demand for petrochemicals Global demand for natural gas leading to major investments in Middle East where plentiful gas supplies exist Client ROI targets based on oil prices well below current market 21

22 Summary Record new award and backlog levels Fluor continues to benefit from long-term cyclical upswings in most markets Large opportunities exist in oil & gas, petrochemicals, infrastructure and power Government business trending down as Fernald, FEMA and Iraq work concludes Financially strong can support business expansion Focus on project execution and performance 22

23 Fluor Corporation 23