Fluor Corporation ( FLR Quick Quote FLR - Free Report) is set to sell its Stork business in Belgium, Germany and the Netherlands along with its U.S. turbo blading manufacturing operation to Bilfinger SE, a Germany-based industrial services provider. The transaction is processed under the supervision of Lazard, a financial advisory and asset management firm, along with necessary consultations with the representative body of the applicable works councils under various customary conditions. The divestiture is expected to be completed in the first half of 2024, taking Fluor a step further toward focusing on its core businesses and capital priorities. Furthermore, on Sep 6, 2023, Fluor entered into a settlement agreement with U.S. Securities and Exchange Commission (SEC) regarding the accounting improprieties charges. The SEC investigated the company regarding this matter in 2020 in alignment with two of its large-scale construction projects. To settle this matter, Fluor will have to pay a civil penalty of $14.5 million. Fluor’s Growth-Driving Initiatives
Fluor focuses on expanding its business portfolio and increasing profitability through various strategic initiatives including accretive acquisitions and valuable divestitures. Also, its efficient service has increased its contract wins over the years. The company is working toward strengthening its market leadership, execution improvement at the project and management levels as well as effective working scenarios with its joint venture partners. These will enable it to accelerate its growth trend in the market.
As a part of its strategic initiative, on Mar 14, 2023, Fluor divested its AMECO South America business, which includes assets in Chile and Peru, to STRACON Group. Previously, it had divested AMECO’s Africa, the Caribbean, Mexico and North America businesses. During the second quarter of 2023, Fluor witnessed contract wins in all of its reportable segments. Its total new awards for the quarter came in at $3.71 billion compared with $3.55 billion in the year-ago period. This brings the consolidated backlog at the second-quarter end at $25.48 billion. Given the growth trends and backlog level, the company raised its full year 2023 guidance, highlighting its solid prospects. Image Source: Zacks Investment Research
Shares of FLR gained 20% in the past three months, outperforming the Zacks
Engineering - R and D Services industry’s 7.7% growth. Zacks Rank
Fluor currently sports a Zacks Rank #1 (Strong Buy).
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