Fluor stock plunges nearly 10% after rough 1Q as CEO and chairman steps down

Fluor completes work on major transmission lines in Puerto Rico. (Photo: Business Wire)

The CEO and chairman of Irving-based Fluor Corporation has stepped down from his position after being with the company for 34 years.

The company announced, on Thursday, David Seaton will no longer serve as the CEO or as a member of the board of directors, effective May 1.

The multinational engineering and construction firm posted a $58 million first-quarter loss Thursday morning.

Fluor Corporation said Carlos Hernandez, chief legal officer and secretary of Fluor Corporation, will take the helm as the interim CEO until a permanent replacement is identified. The company also requested Seaton to remain with the company during the transition period.

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“I want to thank David [Seaton] for his 34 years of service and dedication to Fluor,” Hernandez said in a statement. “He led significant transformation of the company including the rebuilding of our self-perform construction capabilities, implemented our integrated solutions model and initiated our data-centric execution approach.”

Fluor’s board of directors named Alan Boeckmann, who recently rejoined Fluor after retiring in 2012, as the new executive chairman.

“The board has great confidence in Carlos [Hernandez],” Boeckmann said in a statement. “We trust that he will provide the needed direction for the company and build upon Fluor’s leadership position in the marketplace.”

Fluor Corp. (FLR) on Thursday reported a loss of $58.4 million in its first quarter.

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The Irving-based company said it had a loss of 42 cents per share. Losses, adjusted for one-time gains and costs, were 14 cents per share.

The results did not meet Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 54 cents per share.

The engineering, construction and operations company posted revenue of $4.19 billion in the period, which also fell short of Street forecasts. Four analysts surveyed by Zacks expected $4.7 billion.

Fluor expects full-year earnings in the range of $1.50 to $2 per share.

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Fluor shares have risen 22% since the beginning of the year, while the Standard & Poor’s 500 index has climbed 17%. The stock has declined 34% in the last 12 months.

In mid-day trading on Thursday, Fluor plunged 20% after it issued an earnings forecast that was far below what analysts were expecting. At the end of the day, the stock was down 9.43%. It also reported a huge loss for the quarter, while investors were expecting a profit. 


This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FLR at https://www.zacks.com/ap/FLR