FLR - Earnings call transcript Q3 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Please stand by, we're about to begin. Good afternoon, and welcome to the Fluor Corporation's Third Quarter 2017 Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow management's presentation. conference be today's X:XX at of P.M. replay call available will approximately A accessible at Fluor's Time on Eastern today, website investor.fluor.com. The web XX for replay will be available days. will through replay be P.M. telephone A also X:XX available XXX-XXX-XXXX at be will following Xth of required. November on pass code Time telephone Eastern number, and the XXXXXXX the to time, over opening the for this I'd like At turn to remarks, call Mr. Geoff Vice of Relations. Investor President Senior Telfer, Please go ahead, sir.

Geoff Telfer

Executive Stanski, David Fluor's call. With Thank Chief conference Seaton, Chairman you, XXXX Fluor's Deedee, Bruce third and quarter Officer; and Financial Officer. Chief welcome Fluor's today are and to us

earnings and slide regarding announcement to like reference before presentation statements, forward-looking website was market Our But X. released this summarized note I'd we'll we've on refer which after is afternoon you which while close, remarks. started, slide making to prepared posted our on a getting Harbor our Safe

we'll call current our information. of which today's slide During and making forward-looking statements, trends reflect be the and existing analysis presentation,

is differ that an actual However, risk could results inherent there materially.

of filed risk which today XX. XX-Q You can the our differences, our Form factors, contribute February find XX-K could Form to filed and company's earlier in such on discussion a potentially

comparable today's our measures of During may certain the discuss financial are Reconciliations at investor.fluor.com. Investor website we our of posted with amounts reflected also measures. in in and earnings these section release non-GAAP the call, GAAP Relations

Now, let Chairman me David? turn the CEO. call over Fluor's to David and Seaton,

David T. Seaton

I everyone, and joining us everybody afternoon, appreciate Good Jeff. Thanks, today.

third our quarter On the of discuss the market. review and for we'll call, results our the views

per let's quarter. Net earnings were If or $XX Fluor look the third diluted to the attributable you at share. turn slide $X.XX results X, to for million

X.X%. billion, for segment third $X.X quarter a compared the year profit for quarter profit margin $XXX was segment $X.X the million, consolidated million ago. to was and Revenue was Our

number. billion, for the backlog the both removed of with projects $XX.X backlog billion. awards at from having ending that quarter been nuclear New stood And $X.X were

States. including billion the new If X, Mining awards segment & you'll $X.X & quarter, Chemicals the the a Energy petrochemical $XX.X Philippines was in backlog projects, segment slide Chemicals mostly number the booked for in Malaysia, turn Ending United to Mining billion. of for Energy, and

up clients We for the from Based our commodity asking includes FEED BHP in terms us mining, a and of Chile. Spence continue that iron feasibility ore. start as gold, copper, on well in to next mines project we copper of This are the what in work, as at we're studies see award ramp replacement cycle. commodities such believe the as with of

are meaning, oil clear customers environment. advantaged; Our gas and focus a in current the they and distinct have continue economic projects that profile pricing on to commodity

As on we and projects well investment refining clients LNG XXXX, projects decisions in look United chemical final Middle in chemical projects and East facilities and America, the into at pursuing Asia. the as States, see we in North and pipeline as QX

As we years. trough you XXXX, as anticipate know, increase two has into last a engineering an which at for look the we awards, level in been front-end

and Third and billion. $XXX $X.X quarter awards ending million, backlog were industrial for power infrastructure was

Eagle rail the project Project the quarter, is our Line last project, from that ground experience we Maryland XX-mile light During the Commuter Purple completed leveraging on year. Denver brought PX a we Rail

was to York, All traffic span significant allowing in Bridge. first been us Zee formerly the August, power complete which currently Bridge the and plants We the Tappan span to third in the quarter three slide to on projects focus support pleased in which to gas-fired Mario services to executing final solid be new the ending made Government second XXXX. to M. $X.X segment Ending hit XXXX. expect of sometime we progress a in to million remain those of the and billion, the operation Sea. North completed first as Cuomo milestone also was awards Turn billion. $X.X we're opening I'm compared $XXX on X. we of project track in the The complete And span, report on backlog million. ago. services the group new two billion known asset New $X.X late has posted with in in $XXX provide a shifted year first part contracts was new year posted integrity to Colombia Diversified backlog awards third of of including next quarter to Services

for support be backlog bid the into Guam, that services were in During on announced quarter, operating taken contract successful which we we early the will our base year. next

power proud normalcy will of that know, the to Bruce, electric we initial result as And called offices Puerto With Rico. impacts that, we've I address from Puerto and number the we in contract been stricken we're restore part Hurricane the like a role have I'll turn of efforts We've seen I'd to and clients. doing to Recovery continue Engineers affected Harvey, Corps Army our in to finally, to were the Bruce. restoring those a years are U.S. to work Before help and we two employees areas. hurricanes to disaster of and to ago, for announced play we over people support and decades, an Maria. Rico a for call And Bruce? in it the our that Irma Maria. turn of awarded over in locations sense weeks upon you to as employees, of a projects

Bruce A. Stanski

sheet. of the presentation. comments everyone. good turn to I'll and on Thanks, our slide performance, additional some providing third on David, start then your afternoon, by quarter and X to I'll balance Please move

the flat a the metals in million segment mining plus year-to-date. and quarter where billion ago. David Chemicals Energy, Corporate for the marketable execute G&A a recent from for and and third and sheet for said, the quarter billion was awards. ago. year was billion, by last $XX slightly are $XXX & to $XX with we As activities $X.X expense operating start million billion, on for $X.X non-current revenue by driven as Cash to Mining $X.X last cash quarter quarter current business year million, up $XXX million the Revenue securities Shifting line the to improvements the $X.X being was just provided was compared quarter. balance quarter last quarter and

During in the we dividends. million quarter, paid $XX

quarter-end, to was year-ago, nuclear slide geography overall to consolidated at The price XX%, on mix backlog Fluor's was our had XXXX, compared per finally, diluted look my and our We're item on we to we as I and $XX.X guidance mention to percentage share. projects slide XX% was conclude is XX%, X. one backlog. Moving revising X. our in a earnings $X.XX U.S. remarks backlog billion. want quarter-end $X.XX large today to And, by XXXX. non-U.S. of two commenting to fixed XX% contracts I'll for guidance in A the reimbursable when range on which our ahead by housekeeping tightening

Fluor in new under margin about our January revenue and adoption for change segments guidance, contracts. revenue the obligation, of between recognition of engineering Xst, Under our business the to Some people end until report We new me contract the expects that the based standard, have construction won't be the the the which and term recognition new and Upon company's of we the know contracts. accounting effect asked be Starting of will year. construction required volatility the know company construction recognition standard. existing full the contract. of margin of will and entire and standard result a mix will will less performance the what single be of at in the over phases engineering revenue this

guidance As year report XXXX full results. XXXX such, we we're until delaying

impact until the the know won't concluded, economic the full we the of drivers While unchanged. year remain is business

operator, XXXX, going on the G&A currency quarter our are rate and XXXX. expenses $XX to NuScale fluctuation and range ready we're XX% to With For be questions. to into million fourth approximately expense tax we and to share depending XXXX in million be take expected quarter approximately expect $XX be of XX%, a to price. in that,

Operator

we'll to And first our question go from with you. Citi. Andrew Kaplowitz Thank

Alan Fleming

evening, good Andy. for Alan on It's Hi, guys. calling

David T. Seaton

Okay. How are you?

Alan Fleming

for second did broad-based result since in outside and fairly gas. it the bookings in we've is of think aggregate XXXX you TCO, best your oil award David, and strength and Good. with half the seen this mining ECM I of

I decisions. it? with to and moving made a and of here? So you backlog that's kind think think to for customers market potential more this give the starting project to turn And do forward has does at good look mean think that way tendency larger confidence I fair higher turn here you

David T. Seaton

That's schedule. kind But out a is right over great that be question. bitten to trough I've last us And some of starting we're certain I'm shifted the to things optimism cautiously optimistic. does on of trough been I mean the and come on this it. quarters the five give continuing the

as guys are some the the taking I projects gas finally think oil to that terms in intriguing really us well of up of that to and projects mining, the coming as quality are of FID. are the

the we're recovery. answer guess the I So in beginning that is, of cautiously short the I'm optimistic

Alan Fleming

Okay. maybe, about I about appreciate we going David, that. you can forward. And should how margin ECM think talk

the said, you engineering and a But you sizable of margin did rolling quarter as over is being on CPChem think you as some quarters last to I utilization, pointed off. the engineering several awards performance. lack drag book this

a mining think that? you we heading talk more in into maybe should significant XXXX, and how to see start do into maybe inflection So plays about margin

David T. Seaton

I an at give there's really any in least say model. rec component would going that, now. just But what rev correct coming that around would said remind guidance. Bruce you the in to right I'm I not of you're more engineering new

still you're the what margin take-up you're of with of longer two regs. in backlog, margin see in think more see going term but we think a are smooth is, I is to things: what terms improved over going the to I So seeing new terms that

Alan Fleming

over. Okay. Thank I'll hand you. it

David T. Seaton

Thanks.

Operator

Thank question with from you. KeyBanc. Tahira Afzal our comes And next

Tahira Afzal

on Congrats and being David on Hi, back track. team.

David T. Seaton

you. Thank

Tahira Afzal

listening any in like does getting it seems more been petrochem, seem about over thoughts past in sense. So there? know you've the cautiously mining. How customer optimistic, change make more I positive positive to you're LNG, on on your calls,

David T. Seaton

out there Well, there's pursuing. We'll that big quickly projects they some how forward. see move we're

probably reach one I diverse I as pretty we're continue as remarks, the terms you're be said XXXX. see of refining. in or – in well then, it's there. FID what And mean, in in in we'll will correct. petrochemicals prepared strength regard. And as I that'll I see to from think goes again, globally, But think that geography there's two

things same been as be to those a the same listen bit you I've before, customers. I there optimism do well. optimistic. cautiously again, to seems more And to So, little talk and but there wrong

Tahira Afzal

can them to leverage pie, and oil bigger built if that your a of interested, way you've plan, successfully? gas you David, get you on Can that at wondering, the so in I the that leverage a while. relationships you're most Vision side is? probably And Saudi infrastructure for is if was just recently seems like advertised there plan seen look the we've a And, Okay. XXXX you it notable piece

David T. Seaton

Well, the, do organization program have We We're Doha had currently an project called there. infrastructure we've Sharq, heavy-haul there managing always a that. before Saudis project were fairly to doing the and play was Sharq. the management rail was Crossing which it canceled, the for sizable

Tahira Afzal

Right.

David T. Seaton

the mass-transit in the program UAE. We've managed

was week can programs of or the great was were this have had we leverage mentioned not to we there use. types presentations want would past that And made it, there intriguing the the conference, good interested pretty to are So only aggressive, a in fit think that you to call relationships and or we're they resume plans whatever we a I power but that interest the really seminar I us on in. say NuScale. because there within also that got, quite but I

Tahira Afzal

Right.

David T. Seaton

door. that Agreement, bodes XXX DCA And the Clearly, that in where was if with we're that the of kind can DOE terms we're going the there well of our the submittal. and to track. The Saudis NuScale. of for think was get complimentary very I on opens sign And we progress

in statements made So to of Middle a that fit the lot East very those looking doing. the things I at positive me, think, were we're that that were

Tahira Afzal

Got it.

very much, Okay. Thank David. you

David T. Seaton

Tahira. Thanks,

Operator

Thank you.

LLC Our Cook Credit (USA) with next - Credit question is from Good Cook Suisse. Suisse L. evening. Securities Jamie Jamie

David T. Seaton

a see Credit questions. to Jamie L. LLC in see was Cook nice quarter. Fluor back-to-normal the didn't quarter. it's nice And we evening. Securities - Couple (USA) Good any One, charges it David, have obviously to Suisse that

strategically think did whether I decide you about trying longer power term. the for business made talk sense last gas-fired to you quarter

has oil accounting? XX I green next cycle traditional think like business And Is then, out sort question, it last energy which for mining there. you an handicap XX versus if And on obviously, what lower-margin business mining then, a versus shoots forward? months? So if about be your My really over when pipeline third a will adjust think you next I we the second question bigger will go mining Bruce. market of have end in months, the and gas update a the

David T. Seaton

No.

can - on. two it, you LLC have the (USA) Oh, can't only You Suisse – come Cook Jamie L. Securities have Credit you quarter. complimenting two. on I'm

David T. Seaton

one Yeah. while. Come Jamie Well, you L. three - on, LLC Securities questions, think Cook (USA) gets been Credit you compliment a really? Suisse it's

David T. Seaton

in assume a you assumptions the to trajectory, out third mood. is Suisse things new know guidance, one I fair sure just of can I'm the problem math think Cook whatever which But we And Okay. come we that we because fair with is the make one? out, assumption third LLC I we is fine think on to to L. XXXX XXXX Credit want want minus to then, end our make just backlog know, we market obviously, The the Securities projects? to want I (USA) $X.XX. I'm good which don't we talk about markets. right. base it adjust or Jamie What's do have it about which is, the I about own projects have - the on as make the can just for and

David T. Seaton

the little call. his Bruce him questions. is answer official let – here, thing get a fire this I'll But math let under first bit

know XX Credit basically that. the way... market; Suisse Cook you I say traditional that I said wasn't No. didn't (USA) - LLC mean that I our said it Securities Jamie next You've over months. mining didn't L.

David T. Seaton

LLC a is opportunity. (USA) bigger Cook - Suisse No, Securities I Credit L. Which Jamie it. get

David T. Seaton

You basically look gas where market. in just you backlog, very much only that diverse; when said the and I argue long-term. growing. of be in we're it's say, But mining and ago oil going to and was market main a as was market market the mining a medium-term, gas main But our would clearly at oil clearly is is that is versus year a as it now, bigger terms more where gas.

I LLC and would half Cook period think - Suisse Okay. that to that's argue drive I that gas Credit Jamie you kind the is Securities that stated. of So but oil of back the (USA) going still ship, going to XX-month L. be

David T. Seaton

these there my long mining that bit the markets is the I for as some not going more career. like make And forward near-term. need suggesting. to of going things think we're the to be to call, trough, terms kind I'm I awards. think frenzy And going said, I to the numbers in a a they're I mentioned new that in see do are the at some with in kind if that feeding this projects in last of companies of low these We're seeing go of this of

the pie. gas So question not L. think first Cook – before, Credit of are oil LLC I bigger just used gas. - oil because term burnt and and the I've do (USA) Securities mining Jamie up. And government, and Government piece cautiously But been the a gas I sorry, that to but Suisse is be optimistic both going picking was?

last quarter make you makes figure out whether it a said sense in while it to to division. You trying stay you final were

David T. Seaton

We made still a haven't decision.

are Projects owners projects at time. what some ability most there fact, a develop in certain should that been not are dust for that continuing the to that mistakes and gas cost negotiate has an that we're projects one we're market the pursue. the for that that makes and to helping market be. bids right wins, these But which we're cloud In have of looking it's and

we made on. a looking you of knitting, it's So against of in our gas, sticking four haven't on still we're that the executing that made we're basis we mistakes and projects will, completely different kind that But if our really to than we but some We're at executing terms how decision. used. plan

choice margin And our the kind like say, regardless management of this sharpened Just word now, as sharpened in maybe done think we've And still focus a team, selectivity question. I'd on of hiccups, very our, past market. the had we've of selectivity. is we've but a and couple of I the well

Bruce A. Stanski

math LLC is Credit Suisse (USA) absence the how problem is hurt - get the I $X.XX our new – $X.XX projects, When more for $X.XX. of instead Thanks. no, the the look at Securities the we're want projects problem here new of out L. Well, like the taking Cook projects, like Jamie. Jamie it $X.XX be, impact I to take I does the Yeah, of the the as the XXXX. year, much projects

you to add to or Westinghouse So would the sense, going back you're lose to because that $X.XX and project? $X.XX Does out subtract make that. $X.XX then

Bruce A. Stanski

sense. correct. appreciate Cook Suisse And Securities make it. directionally Thank All it's L. you. would Credit right. does (USA) I That - LLC say Okay. Jamie I

David T. Seaton

the you - tempt L. Cook back ask You (USA) Don't can like. LLC question, if fourth get queue Suisse in Securities Credit Jamie and a me.

Operator

next, we'll hear UBS. with Thank you. And from Fisher Steven

Steven Michael Fisher

afternoon. Good Thanks.

David T. Seaton

afternoon. Good

Steven Michael Fisher

And six since mood, I've you're in questions for a you. got good

Just kidding.

David T. Seaton

I have I the we queue. know X'd should off him thought that.

Steven Michael Fisher

market So that That you worst environment was the pretty starting quarter, was David, statement. the XX last commented years. in strong a

cautiously you're changed three the months? over of optimistic. Now, kind What's last

David T. Seaton

basically, these I of that we're think back it said about going see previous forward, that And move I talking a of end XXXX starting timeframe. was be was to Well, time. was the but kind what projects to companies I

working on is one moved probably it actually of already have of I others schedule. and think a come that that made. stop that projects moving most were funding, forward we're the the received are some be terms quarter-to-quarter. where in of example projects great they're of decisions through and that around we counting in And are those LyondellBasell appears There's to couple cases on. going going we're to And one. on a it moving are –

said, it's like seeing performance award through better element. new happening But not a of we'll slog a we XXXX, in think things in end a go up the I whole And think have quarters. in I just timing than big two next I think, I'm XXXX. as I So with we'll XXXX,

Steven Michael Fisher

Okay. the it the for I EC&M backlog any then, just That's you the is billion roughly clarifications. helpful. backlog? in maybe do preliminary quarter. to backlog was the affect of it. how recognition couple And missed but standard I And $X What downward adjustment have Q, in expectations to revenue a see new the then, going didn't

Bruce A. Stanski

mind. if I'll don't take you Steve, that one,

Steven Michael Fisher

Sure.

Bruce A. Stanski

we in a Furnished billion EC&M – CFM, $X was The project segment project. pipeline from our to and refinery Materials, had Customer remove

were in segment. cancellations no there So that

backlog rev and on XXXX. side, that's the As far as much as understanding we'll what impacts be rec will from the a have revenue the close and XXXX, evaluating. earnings what we're out better Again, we

Steven Michael Fisher

Okay.

Bruce, take out did sorry, those And your things scope? why you of

David T. Seaton

longer for Material no those We Furnished on Client the had responsibility the two projects.

risk doing we're the profile those contracts diminished. we're projects, project And engineering of the the for and those responsible two still management, material. not So

So flow our it books. doesn't through

Steven Michael Fisher

Thanks. enough. Fair Okay.

Operator

next, And Revich hear Jerry from Goldman you. Sachs. we'll Thank with

Jerry Revich

Hi. often XX opportunities. folks translating most Good over you commodities afternoon folks or months? you the regions of optimistic best lot markets. out bookings have just next David, into you're early and the what Obviously, and Can look good spans about for evening. mining you at a flesh commodities mining

just any be us helpful. could you there, give If that'd context

David T. Seaton

copper. I Well, certainly think

a rise copper You've fair seen and of the prices on there's work. amount

we're bauxite the in to can been they still some ship commodity. Africa. as seeing perform. we're projects they just side. in programs the refill starting opportunities some come Western in we've We're to iron stuff on ore. capacity got And fabrication replacement ability What and to figure out They've see to then, now in aluminum how back the as seeing also of much shipped is awarded Some that is

move. iron seeing aluminum, mostly and it's So that we're copper ore

Jerry Revich

How the the you're Diversified radar And pursing you over you Thank there? can that need Government to anything to XX keep talk about Okay. thinking you. are months? about opportunities next on opportunities backlog Services we mind? meaningful then, in and grow in the the

David T. Seaton

I work, there's that. I the having question think a think But – think Well, come from am in to this answer government as work. when I about good no position you as Bruce new is

three that think bids to to fair to much the from need near-term to got away coming the that's amount quarters. biggest in how of be there's it the going I thing And up do a are But help Rico. we take in Puerto You is do four to next, someone. just say,

process. contract what, argue $XXX they're contracting at, Katrina. And mean this in look will you additional just space. Katrina, There's the out an XXXX, the I rivals would grow. that I after it's way I damage million Puerto available. XXXX, If the Rico's That's think first using

there's shrinking going our globe. that there. And there. strife won't I contracts see think you over So the opportunities be probably LOGCAP the near-term, certainly the some And there's around growth and be I think to additional

Jerry Revich

good out the earlier the timeframe. Okay. flesh mentioned Thank moving opportunities what you see you. you to part oil are most within see I and just gas gas the pretty in within oil area? forward think And you chain XX-month what lastly, six and markets food first? Can that David, I you end of guess positive

David T. Seaton

offshore, Petrochemicals will one around projects although opportunities XXXX before of some see to upstream LNG and XXXX, say are probably new very and in come kind XXXX think that's significant starting to two. and or refining. I production, I'd a starts there studies back. is petrochemicals which But little There it we're that timeframe, be go refining, one two

Jerry Revich

Okay. you. Thank

Operator

next And you. Vertical Dudas from Michael Research. with comes question Thank And

Michael S. Dudas

evening, Good everybody.

David T. Seaton

I can't Mike, hear you.

Michael S. Dudas

you Can me now? Can hear me you hear now?

David T. Seaton

Yeah.

Michael S. Dudas

Okay. Thanks.

Sorry, Two David. thoughts.

Line news about the Purple going. First, good getting

be helpful a given through? things any seeing larger million be that type even Fluor see helpful could $XXX PX the and road? of the lot $XXX or that that we So strategy refresh you're you're that some funding flush on how coming the still you front projects some million, infrastructure your $XXX side. to projects the And for couple of and on those years Can more million next on state down that there are door pursuing, might very local that could us through big

David T. Seaton

million going think project. dozen that I to in you're There's, we'll million a is, be or what to we a I know, the is near-term think so see $XXX half the don't $XXX we that various working go we're big in projects slate and XXXX. of markets be successful that into on, until XXXX. various a on kinds in awarded won't There's probably bid as infrastructure on

had of a kind And projects. low low. went it's a before through of big development projects to But then, little successful into backlog, Line and working on we've we Purple smaller couple on come So with the on a several large be going bid ones those big of been back. on We the we're ones. like bit a procurement

Michael S. Dudas

can I Left bridge hope we Lifter? to find the Coast another use

David T. Seaton

right. right. That's That's

Michael S. Dudas

over And and so bridge that all a I a doing they're twice day, drive doing great and hard working real there. job

David T. Seaton

That's good.

Michael S. Dudas

appreciates So one commuter it.

David T. Seaton

how commuters I get be surprised e-mails from. You'd many

Michael S. Dudas

Good or bad?

David T. Seaton

the They'll me only see let ones. good

Michael S. Dudas

generate question second going the a commissions the got continue how from forward. don't on people So sense know from can early seeing U.S. it lot corporate in a do side. And things economically that into but the there's you some we I from more get if reform, such Fluor to just morning, tax know to in the see I of talked U.S. momentum is, any impact if economy? indication activity you're that that with if could XXXX goes we're be this But looking in the that U.S. things announced might you on benefits the there this

David T. Seaton

of some everybody sure and We can place. to that'd got get Well, I'm Association But of There's through point that United well. the to National be of make things And manufacturing. amount there'll market as outside doing. in a States United vantage a still the in from reinvestment be if States a takes fair lot that in from law, it we process investment we're well-positioned great. significant direct reconciliations that we're on in go seeing in the the already we're Manufacturers,

what to law. it's positive So think, forth, think it good the really everybody. put impact becomes simplicity is And of once going I a for I have they've

think of U.S. kind lot our I that about of that will the fair reasons, regenerating hopefully good of we'll of and build withstanding be that. of investment terms pretty I'm a manufacturing, there that not share So in for excited the Mike, uptick and a

a will the catalyst that pretty growth. optimistic good I'm law tax for be So new

Michael S. Dudas

Thank David. much. Excellent, you very

David T. Seaton

Thanks.

Operator

you. Baird, have thank Justin Hauke. lastly And And from we

Justin P. Hauke

Thanks.

ones So here. I've of quick kind got two

maybe First, I understand contribution number quarter? basically the if you quarter just the implied that's $X.XX clarify fourth had to there wanted there's and revenue in from should quarter, residual and nuke to second the we or is any the if that to try clean versus $X.XX a think the nukes in maybe contribution some the third

David T. Seaton

both sides. on working still we're Well,

thing. I and it's kind of mean, little twosie So, onesies

I think about shut people helping project them site the XXX on got still that SCANA down. we

So there'll material. won't be be some, but it

Justin P. Hauke

or Okay. Great. guess since second buybacks. more in. do any sheet's what here? sheet you balance guess is good been you It's bottom with I And about have you thinking you to back years the I saying like feel good you're Is just sounds you're were a balance Previously, what mostly question the on you've It don't that buying a two in invest – mid-XXs, stock want the position, then, the table capital done about guess you here. the I are allocation. to pretty that the you really at much on fab buyback left yard in

David T. Seaton

answer I'll let that. Bruce

Bruce A. Stanski

to $X billion, we've and cash been. But that's unchanged. where Justin, a question. at and remains capital Obviously, relative over it with consistent very our remains really balance good securities that's our strategy,

you as a we So, allocations. know, capital for have priority our

of first, The is course, to operations. current fund

by The dividends. second is our to service paying shareholders our

list cash at I where niche we're right lastly, have And now. worked looking have excess way we down capital effectively think in repurchase that don't and share when that M&A select that position think we our very we opportunities. Third, –

place share we is our near-term, repurchases now. capital right best put don't for the the So see to

Justin P. Hauke

you. Thank Great.

Operator

over for gentlemen, finally have remarks. the And, we no call further to back questions queue. the you turn I'll in

David T. Seaton

execution that for it and actually. support, to the say right I in we stepped markets win quarter Michael all this but and And results didn't our of disappointed are got appreciate and of here. that questions record it's about six is us greatly we my really I that cowboys, for Well, three thank really across because clear serve. and a your rules wondered direction. call. breaking We the save positioning focusing asking that of was for appreciate advantaged But you like thank everyone your in time we'll I terms in on that the that people today. is that believe anything I would the end time participating this to projects ourselves we're and later.

Operator

that thank call, you and for conference joining. today's And we concludes

Geoff Telfer	Fluor Corp.
David T. Seaton	Fluor Corp.
Bruce A. Stanski	Fluor Corp.
Alan Fleming	Citigroup Global Markets, Inc. (Broker)
Tahira Afzal	KeyBanc Capital Markets, Inc.
Jamie L. Cook	Credit Suisse Securities (NYSE:USA) LLC
Steven Michael Fisher	UBS Securities LLC
Jerry Revich	Goldman Sachs & Co. LLC
Michael S. Dudas	Vertical Research Partners
Justin P. Hauke	Robert W. Baird & Co., Inc. (Broker)

Fluor (FLR) 2 Nov 172017 Q3 Earnings call transcript