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Flour Announces Stock Buyback Plan

March 09, 2000|Bloomberg News

Fluor Corp., which has seen its stock slump more than 26% so far this year, said Wednesday it plans to buy back up to 7.5 million shares as the giant engineering and construction company seeks to boost shareholder value.

The buyback, representing about 10% of the Aliso Viejo company's common stock, would be worth about $181.4 million, based on the closing stock price Tuesday.

The company said it will immediately begin repurchasing the shares.

The stock, which traded as high as $48.50 a share early in January, had sagged to $23.94, a 52-week low, during Tuesday's trading session. The shares rallied Wednesday after the announcement, moving up $4.38, or about 18%, to $28.56 on the New York Stock Exchange.

"The stock has been grossly oversold over the past couple of weeks," said Michael Dudas, an analyst with Bear, Stearns & Co., who rates the stock a "buy."

Fluor's revenue last year declined 8% to $12.4 billion and the company predicted only modest growth this year.

Last month, Fluor said it will close its plant in Marlton, N.J., by July 1 and cut more than 300 jobs, part of a yearlong reduction of 5,000 positions worldwide.

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