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Large Quarterly Loss Dampens Fluor's Hopes for 1987 Profit

September 16, 1987|LESLIE BERKMAN | Times Staff Writer

Fluor Corp., still struggling to reverse nearly three years of red ink, posted a $32.9-million loss for the quarter ended July 31, bringing the company's combined losses for the first nine months of fiscal 1987 to $118.9 million.

The Irvine-based engineering and construction firm attributed the quarterly deficit primarily to losses from its real estate holdings, higher taxes on overseas operations and interest costs on debt.

In contrast, Fluor reported net income of $1.1 million in the third quarter of fiscal 1986. Last year's earnings included a $27-million after-tax gain resulting from the final payment on its headquarters complex in Irvine, which it sold for $340 million. The company now leases space in the building.

For the first nine months of fiscal 1986, Fluor lost $3.9 million.

Third-quarter revenue in 1987 was $909 million, down from $973 million in the year-ago quarter. Revenue for the first nine months of fiscal 1987 totaled $2.7 billion, compared to $3.4 billion a year ago.

Tom Samuelson, an analyst with the Chicago securities firm of Duff & Phelps, said the third-quarter loss shows that "Fluor is still in for a tough time. . . . It is not a robust turnaround by any means."

Samuelson said he expects the company to report a loss for fiscal 1987. The company might break even in 1988, he said.

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