Fluor Corp (NEW) (FLR)

Flour is best of breed when it comes to American infrastructure stocks. They have a tremendous balance sheet, with over 2 billion in cash and only 18 million in debt coming due over the next five years. Management is very knowledgeable and has built up a record 35 billion backlog and can be counted on to navigate the next 12 months better than most.

The engineering and construction companies had a great year in 2007. Their current environment is like that of the deep offshore drillers. They have large backlogs of work, and an environment that is very bullish for their businesses. FLR is the largest of these companies, and arguably the best. 101 days ago, I placed a buy recommendation on theupdown.com, and it is up 45.20% within that time frame. The world is currently a bullish venue for infrastructure and energy, and FLR is better positioned to take care of the world’s needs based on their size and specialization. Revenue for 2007 was $16.7 billion and at the end of the first quarter they had $31.5 billion in backlog.

Engineering and construction companies have good transparency with respect to forward growth. Not only do they have transparency, but they are also the center of a worldwide build to allow for the growth of many emerging economies. They have good diversity with respect to their business, as FLR received 54% of their revenue from oil and gas in the first quarter. Infrastructure was 16% of their business, global services was 15%, power was 9%, and government was 6%. With respect to their backlog, 65% is oil and gas, 18% infrastructure, 8% global services, 7% power and 2% government. FLR’s growth going forward will be bolstered by an oil and gas market that is the top of everyone’s agenda. They are currently working closely with the Middle East to pick up oil production. Refineries need to be upgraded in the US, North American power plants need to be built, and nuclear work in Russia, and the US.

Since the second quarter of 2006, new contracts have been steady with respect to each subsequent quarter. The awards have fallen between $4.5 billion and $6.3 billion. Over that same period backlog has increased every quarter, from $18 billion to $31.5 billion. Of the backlog, 46% is in the US, 40% is in Europe, Africa and the Middle East, 9% Asia, and 5% Americas. Revenues were up for the first quarter year over year by 32%. Operating profit was up 40%. Net earnings were up 63%. EPS was up 60%. New contracts were up 28% and backlog increased 33%. Their cash, dividend and return on capital all saw significant increases. Debt to total capital decreased from 25% to 12%. EPS has increased every year from 2004 and estimates for this year have the company showing very good growth.

Analysts have the company’s earnings growing 46.8% this year. Next year, they are projecting growth at 19.7%. They have beat earnings for three out of the last four quarters. I think these estimates a very low based on the power needs for the world going forward. Not only is oil going up significantly, so is natural gas and coal. This shows the need. As these needs continue to increase, E and C will do very well. I think this will be another excellent year for FLR. Current trends have this stock going to $250. Look for a stock split in the near future.

nice numbers but it looks over valued to me. i would look to get in on a good dip in price .

Let's see... company announces great earnings yesterday, guided up aggressively, wonderful backlog... yep, those are great reasons to take the stock down 10%... If you sold your shares to me today, thank you... if you sold your shares to someone else today, you're an idiot. I understand that McDermott's quarter was disgraceful, but here is where the Fools who do their homework can pick up FWLT and FLR as the babies being tossed with McDermott bath water...

Fluor serves clients in a wide variety of traditional and evolving industries worldwide, including chemicals and petrochemicals; commercial and institutional; government services; healthcare; life sciences; manufacturing; microelectronics; mining; oil and gas; power; telecommunications; and transportation infrastructure.

15 billion in backlog business and growing; the best of several infrastructure companies;

I anticipate that with the democrats holding power that there will be addition government contracts in the next 5 yrs, add to that the oil industries clamor to build additional refinerys and you have two of the most promising areas for growth for this organization.

Oh my god have we got lucky to be able to get into a name like this at these sale prices. Everyone is afraid, that means its time to start buying.

Price should gradually rise to 150-155 over the next 3-6 months, and should steadily rise to around 165-170 in the next 12-15 months.

Excellent global engineering and construction fi rm; 32% growth 1st qtr, gov projects worldwide, 50% of business comes from oil and gas but also active in gaining a strong foothold in alternative energy. I really like their long term potential as a leader in global construction.

Energy cutbacks announced (500,000) less barrels daily by OPEC simply highlights the necessity for self sufficiency in oil, gas and nuclear developement. Fluor is the largest developer of the above, and will only derive more and more business in this goal during the next 2-4 years.

Obama is going to take the worthless paper off the banks balance sheets and put them on to yours. Expect to see a big rally in the market that could last several months.

major engineering company involved in oil and gas production, nuclear engin., coal etc. These are the people that are revered by energy companies. They get the job done. Today, the competition is at its greatest. good luck!

"Fluor (FLR), a global engineering and project-management outfit that provided engineering or construction services for 20 nuclear units between 1970 and 1993 -- and is an expert on cleaning up nuclear waste. This year, Fluor formed an operation to address potential new U.S. nuclear-power business."

Gas and Oil and government. This company will be demand.

With Fluor's diverse engineering output, it will be able to prevail in both slow and thriving economies. It's world presence particularly in developing coutries will allow it to continue with stability and steady growth over the next two to four years.

Oil & Gas, Infrastructure, Government, and Power professional services. I think most, if not all, of these areas will be outperformers going forward.

I bought this a lot lower and believe this co. will flourish with major reconstruction being one of the ways to get our economy out of this mess by getting people back to work.

A heavy construction giant Fluor Corp is poised to benefit from government spending on infrastructure which is likely to increase. Q1 earnings were great and a large backlog will ensure Fluor has every opportunity to grow earnings in the coming year. This is kind of a band wagon play but it makes sense from a Macro viewpoint. This is an expensive business, but they should still do well in the near term.