IRVING, Texas--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) today announced financial results for its year ended December 31, 2020. Results for 2020 were a net loss from continuing operations attributable to Fluor of $294 million, or $2.09 per diluted share, compared to a net loss from continuing operations attributable to Fluor of $1.5 billion, or $10.89 per diluted share in 2019. Consolidated segment profit for the year was $317 million compared to a loss of $186 million in 2019. Consolidated continuing operations for the year included non-cash impairments and charges of approximately $358 million to reflect the impact of weak commodity prices and COVID-19. Operating cash flow in 2020 was $186 million compared to $219 million in 2019.
Full year new awards were $9.0 billion, and ending consolidated backlog was $25.6 billion. Corporate G&A expenses for 2020 were $241 million, up from $166 million a year ago primarily due to $47 million in foreign currency exchange losses, $42 million in investigation-related expenses and higher stock price driven compensation. Fluor’s cash and marketable securities at the end of the year improved to $2.2 billion.
"While 2020 was a challenging year, I am encouraged by the resilience of our organization," said David Constable, chief executive officer of Fluor. "This year will be a bridging year as we anticipate COVID-19 impacts abating coupled with our focus shifting to implementation of the newly announced strategy. I am confident that our path forward will serve Fluor’s shareholders well."
Fourth Quarter Results
Results for the fourth quarter of 2020 were a net loss from continuing operations of $115 million, or $0.82 per diluted share, compared to a net loss from continuing operations of $294 million, or $2.10 per diluted share in the fourth quarter of 2019. Consolidated segment profit for the fourth quarter of 2020 was $75 million compared to $89 million a year ago. Corporate G&A expenses in the fourth quarter were $147 million, compared with $46 million a year ago, due to unfavorable foreign currency transaction losses of $61 million and higher stock price driven compensation. Revenue for the quarter was $3.7 billion compared to $4.4 billion a year ago.
Renewal of Credit Facility
The company recently entered into an amended and restated $1.65 billion credit facility, extending the facility through February 2023, and replacing the prior revolving loan and letter of credit facilities.
“We believe this is the appropriate sized facility with the flexibility required to support our business given the new strategic priority to reduce our risk profile. It is also another good example of making Fluor fit for purpose,” said David Constable, chief executive officer. “This new facility improves our liquidity position as we now shift our focus to debt retirement.”
For 2021, Fluor is establishing its initial adjusted EPS guidance at a range of $0.50 to $0.80 per diluted share. Adjusted EPS guidance excludes NuScale related expenses and any impact from foreign currency exchange gains or losses, restructuring or impairments. Guidance for 2021 assumes increased opportunities for new awards in the second half of the year as post-pandemic capital spending improves.
The Energy & Chemicals segment reported a profit of $164 million in 2020 compared to a loss of $95 million in 2019. Segment profit in 2020 improved primarily as a result of charges taken in 2019, offset by reduced execution activity and margin diminution related to COVID-19. Revenue for 2020 was $5.3 billion, down from $5.8 billion in the previous year. Full year new awards in 2020 totaled $2.0 billion, compared to $3.7 billion in 2019. Ending backlog was $11.0 billion compared to $14.1 billion a year ago.
The Mining & Industrial segment reported a profit of $122 million in 2020 compared to $159 million in 2019. Segment profit declined in 2020 compared to 2019 primarily due to a $31 million favorable dispute resolution recognized in 2019 and a decline in activity due to COVID-19 and certain projects nearing completion. Full year revenue for the segment of $4.1 billion declined from $5.1 billion a year ago due to a six month suspension of a large mining project in South America due to COVID-19 as well as a decline in execution activities for a large life sciences project and two mining projects completed or nearing completion. Full year new awards in 2020 were $2.8 billion, up from $1.9 billion a year ago. Ending backlog was $4.0 billion compared to $5.4 billion a year ago.
The Infrastructure & Power segment reported a profit of $13.7 million compared to a loss of $244 million in 2019. Full year revenue for the segment was $1.6 billion compared to $1.4 billion a year ago. Results for 2020 include a positive settlement on a cancelled rail project offset by charges for cost growth in the infrastructure legacy portfolio. Full year new awards in 2020 were $764 million compared to $2.6 billion in 2019, and ending backlog for the segment was $5.2 billion compared to $6.1 billion a year ago.
The Government segment reported a profit of $88 million in 2020 compared to $200 million a year ago. The decrease in segment profit in 2020 was substantially driven by the favorable settlement of two nuclear power plant projects in 2019, and reflects the adverse impact of COVID-19. Full year revenue for the segment of $2.9 billion compares to $3.0 billion a year ago. Full year new awards in 2020 were $1.9 billion, compared to $2.0 billion in 2019. Ending backlog was $2.8 billion compared to $3.6 billion a year ago.
The Diversified Services segment reported a profit of $14 million in 2020, compared to $15 million a year ago. Results for 2020 reflect reduced volumes of higher-margin operations and maintenance activities as a result of COVID-19, offset by a reduction in overhead costs. Full year revenue was $1.6 billion compared to $2.0 billion in 2019. New awards totaled $1.5 billion for 2020 compared to $2.2 billion in 2019. Ending backlog was $2.4 billion, compared to $2.5 billion a year ago.
The Other segment, which is comprised of NuScale and the Radford and Warren government projects, reported a full year loss of $85 million, compared to a loss of $220 million a year ago.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is building a better future by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s 44,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $15.7 billion in 2020 and is ranked 181 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than 100 years. For more information, please visit www.fluor.com or follow Fluor on Twitter, LinkedIn, Facebook and YouTube.