Increased wind project costs to trim Fluor's earnings in Q3 2010
(ADPnews) - Oct 19, 2010 - US construction major Fluor Corp (NYSE:FLR) said yesterday its third-quarter earnings would be affected by a USD-163-million (117.1m) charge related to rising costs at an offshore wind project in the UK.
The company said material and equipment delivery delays at the Greater Gabbard offshore wind farm that led to considerable costs for additional vessels and other subcontractor costs for installation and repairs.
Following an evaluation of third-quarter events, the company downgraded full-year earnings guidance as well. It now expects earnings per share (EPS) of USD 2.20-2.50 for 2010, compared to the previously estimated USD 2.90-3.20 per share.
Fluor received the USD-1.8-billion contract to set up the 500 MW offshore wind farm in 2008. It expects to complete the project in the beginning of 2012.
"The company has taken a number of remedial actions to mitigate further cost escalation and delays to the schedule", Fluor said.