FLR - Earnings call transcript Q3 2019

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Operator

Good morning, and welcome to the Fluor Corporation’s Third Quarter 2019 Earnings Call. Today’s call is being recorded. At this time all participants are in a listen-only mode. A question and answer session will be follow management's presentation. A replay of today’s conference call will be available at approximately 10:30 AM Eastern Time today, accessible on Fluor’s website at investor.fluor.com. be XX will replay web available days. for The investor.fluor.com. be X:XX through PM telephone website registration replay Time through also will at Fluor’s on Xth A Eastern available on also accessible link, a November

turn At this time ahead, Investor over opening remarks, Mr. of Landkamer. Jason Director Please the like Landkamer, I to Relations. call would for to go

Jason Landkamer

Financial Fluor’s Thank Officer. Steuert, us today With XXXX conference you and call. Mike good and morning. Carlos Welcome Chief Hernandez, to Fluor’s Officer; Chief Fluor’s third quarter Executive are

was will Our and have making announcement morning earnings released our we remarks. posted this on presentation website prepared a reference slide which we while

I’d started, is getting harbor on note you forward-looking like Before to summarized our safe to refer slide which statements X. regarding

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

an is There and results risk actual differ inherent experience materially. could that

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

Our [Indiscernible] posted. issues however it due X-K to not morning has filed was this

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

turn call Fluor’s Now Hernandez, I’ll the over Carlos? CEO. Carlos to

Carlos Hernandez

and Thank you, us you morning. good Thank today. Jason, to everyone joining

to of the changes reiterate September part I we quickly as review our strategic Before want we and results, our discuss on XX operational quarterly announced review.

discontinued will businesses. to of we be government a to all plan you today slide the lines those last business to committed rental equipment sell would three; as reporting If please month operations. turn we and substantially Starting

fixed segment Power. keep contracts called we two will & price Power standalone NuScale. Mining, Mining & also Industrial a "Other" We're into and created Industrial Infrastructure our segment also our splitting government segments; & We Infrastructure and where two

our actions The reflect the over of months the are few reality industry. taking we last

to changes consistent put company undertaken with and the to act urgency to strengthen continue on floor a have these growth. We deliver profitable path and and

this of I we future of can and result understanding positively believe a have a better have backlog As results. product confidence that drive backlog our

Now updates. segment to turning our

would you Energy the segment of complex million were was Ending was removal awards $XX.X in Chemical quarter plant slide new third and please quarter. this and year five; by If turn backlog in the reflects with & that ending third chemical the $XXX for the the backlog to client Louisiana booked earlier billion. canceled Wanhau the

FID and awards result quarter decisions New the for the the criteria. are of our not primarily revised of clients pursuit timing reflect

to committed help We pursuit pursue to are and And deliver following derisk believe new we the will with a clear right terms. the us business our criteria higher margins. contracts right the criteria

project the LNG in notice-to-proceed One this criteria fits Fluor a JGC venture our our were month. new that of is Rovuma joint exam Mozambique. a partners, earlier limited TechnipFMC and and project awarded

last quarter venture is This XXXX. quarter's each to final standards model closely our leverages party's project with announced to is aligned work our – fourth the the a We until early capabilities. appropriately last on strengths with and updated project on the award in reached allows quarter decision This progress joint develop investment that bidding project call. consortium team

Canada derisking that on relationship partners strong good Like the We of a months LNG items our space. LNG client agreement reach also to profile. with deep we experience number an were held in execution a that have the several meetings over to the last have critical with

our deliver with partners lockstep in work to for that our to continue meets project productivity and to requirements safety, going We're profitability.

to we quarter the early and As fourth look XXXX

BASF. ethylene include projects a around an INVISTA, Europe project oxide in the several for in the world. petrochemicals prospects for Chemicals Sunshine include Louisiana, mega China & Our Formosa reimbursable These plant and Energy in significant complex

for Mining Let's and new billion. of ending large EPC slide our expect Industrial and was backlog $XXX third awards the be turn and year continue $X.X reported quarter project track Mining for six. & FEED million to The expectations that XXXX EPC in to awards from last XXXX mining to as work awarded to in continue we XXXX. studies Group feasibility we on

to backlog & turning slide Now and in of billion. Infrastructure quarter Group seven; reported awards third the new Power $X.X billion the ending $X was

outside as included addition in project as Texas Carolina Dallas New DOT the the I-XX well DOTI-XXX East project awards of North the of Asheville.

$X experienced revisions execution our on million second projects margin in reflects forecast lower of profit that Segment the quarter.

the Fluor Now in and Texas remain Civil looking our strong pursuing and confident we Group. from road Heavy project ahead prospects additional are

turn Let's to slide eight.

reported Our ending deliver America This of Restructuring million to North in Stork improved moved continues progress segment diversified to which and been will business has excludes was awards new billion. AMECO schedule we operations. $XXX on backlog results and segment anticipate discontinued services $X.X this XXXX. of

and Warren and to segment in government investment fixed-price the Turning two slide nine; our Radford includes other projects; NuScale. our

review, we $XX in this Warren quarter Radford to our strategic in reported highlighted As million relating and the charges projects.

changes our These estimate, estimate. orders. to cost our and current charges engineering growth relative The complete change charges additional reflect taken unapproved initial cost today reflect

NuScale the that million, NuScale in point the expenses were to quarter but $XX I out Fluor did for provide funding third not want do for quarter.

actively the engaged funding receive another quarter in additional and tranche with investors. to expect are We fourth of

of and share in Savannah successful government for America which Idaho we winning contract million AMECO quarter. $XX National business businesses per the our in reported earnings was River and In $X.XX extensions includes discontinued or Laboratory. Government operations diluted North

one Our divest these sales completed well businesses those expect are plan to and progressing within be we to year.

Mike the the turn Mike? to and from outlook. financial I'll through over now, quarter And to results call talk

Mike Steuert

morning everyone. Carlos and the you, Thank

about key to read release we earnings file focus XX-Q the our morning, for on in our and can that results will hope matters. you quarter As I this several

Please turn to slide XX.

to to million. following related establishing net million allowance Our a quarter for $XXX charge quarter of for valuation non-cash net of Fluor assets. a third items; tax the the earnings include continuing attributable $XXX against operations, loss Results were the a deferred

in Yard government impairment Stork non-cash in just on Fab $XX activities project adjustments charges that Sacyr. our talked in Carlos $XXX projects $XX to restructuring investment our in our China, two million million million and about. venture with joint and related in

All with communicated month. these review are consistent we and strategic operational what last call on items a

As want it sheet out accounting technical adjustment for purposes. available to again the relates deferred remove assets for balance our tax they while point still assets are to tax our I we that to Fluor of these from reasons

being rate anticipated tax impacted could than this due impact the benefited. and This this not tax higher foreign by to charges be company certain could is allowance valuation -- quarter tax that

That year $XX is favorable announced to due we'll ago. by foreign third accruals reduce to is and the this for compared was plan expense million adjustments. compensation Last plan update our provide G&A lowered month, and $XXX Corporate year. quarter exchange to G&A million overhead later underway $XX a reduce million. we

slightly to marketable Shifting $X.XX plus securities quarter the billion Fluor's sheet, cash the balance please to last slide for were turn quarter. below XX.

from marketable Our cash securities. quarter available represents domestic now and total improved cash last and XX% of

all that asset this quarter are we The non-cash. impairments took

$XXX third a approximately charges $XX the Cash addition fourth in quarter in quarter used fund for portion roughly the in loss to the restructuring activities total of the projects We going million. non-cash. In this the $XX million and expect quarter. and billion fund for quarter cash operating to utilized forward by also

aligns other by $X.XX As share. per dividend dividend with $XX our announced we declared quarter usage paying and per yesterday This on our cash dividend million payout companies. September XX, new of similar reduces quarterly

are sales remain These sheet of confident excess will along equipment our flexibility businesses. further are and and expected rental with we our complete that on sale billion rebuilding surplus generate aggregate We enhanced estate focused of balance $X proceeds. in to government financial monetization, real investments and non-core as be other the

about you fourth quarter. outlook for by XX, slide to conclude And now, my if the comments turn I'll our talking

& company's for for the for Power X% & Industrial, X% approximately be XXXX, margins X% X% Energy Chemicals, Diversified the to for guidance Although suspended again for X% approximately for and Services. quarter & fourth Industrial X% to anticipate to we Mining

in to also which & margins out quarter. margins affected closeouts Energy than the quarter fourth by expected I that positively in were resulted point higher third in want Chemicals that

February. for and expect the year plan XXXX guidance issue XXXX operational in our we the reviewing at currently call to are full of end We for

are With questions. that operator, we ready take to

Operator

from [Operator Please go take question Instructions] from you, Cook Credit We'll ahead. now Suisse. Thank our first sir. Jamie

is line open. Your

Jamie Cook

a Hi. Good of One, we here questions. sit to as couple relative later your guess month the morning. I call. outlook strategic

view charges health the If the properly comment of risk your on the on risk in and whether of we've you understand the backlog is could going forward? just backlog like where and incremental

can flow been you some optimistic? be help the any there flow? business, Mike, on of the problem guess have flow, decision that the And on since the Is where don't transactions guess? to the the yet. XXXX us want second, understanding for burn you're and I process guidance last, operations government to long outside or to how of sales guidance I we the and you When you long-term Thanks. in sort expect cash announced we whether are sell asset sort cash announce from of sale give of asset more projects give cash positive cash then given on

Carlos Hernandez

while holding we we I'll around first government charges on very that. about you estimates well rest where With ask indicated we guarantee we I'll are With backlog, that to We've can't Good the this have of had the arms to our in -- which can feeling very Mike we -- took of to that, the and very, morning, quarter take and as expected I'm charges respect of backlog charges the there. a see one. the couple the to Jamie. optimistic and respect our gotten been take won't we two, projects third a are couple do very future. very confident portfolio, have

expect that we're it's XXXX of how businesses. interest going bit can ahead and We're business, got process. mid no promptly. a probably buyers those we significant both later very there investment are got to But both to about With both rental – businesses. to We've close we've early on positive we'll tell very that you respect We list the the the be to engaged than transactions, I is in but a probably and little bankers with respect for interested Mike? further transactions progress. very progressing

Mike Steuert

cash let Sure. me talk flow. about Jamie,

some that in second We quarter First, did as of our we took look projects. loss modest at in the quarter. charges we and the third experience the outflows

Most end of quarter of some XXXX. fourth have well vast path by -- projects We the XXXX. through majority will those in those completion along and their will the of be outflows the

we to from But time, at underlying address all to expect -- flow have improving that. the expect rest businesses. cash the we So of our same are working positive on see and operations

the on a that will that some not positively working assets sheet the or as we'll the see yet impact items, we it we can of cautiously affinity working sales. monetize throughout and lot and the in addition, out would will into point other optimistic flow some and year other of that claims we're XXXX. we other assets we positive growth over amount as with on selling also we'll I'd next asset on perhaps I latter cash to you like half well. February. balance other have In We're really non-core the investments as move that But and break net that to cash hope mentioned of I am special some -- some all of XXXX But

Jamie Cook

Okay. I'll in. Thank to helpful. else get someone That's you. let

Operator

We'll from now Andrew go Kaplowitz ahead. question Please from Instructions] our [Operator next take Citi.

Your open. is line

Andrew Kaplowitz

guys. morning, Good

Mike Steuert

Good morning.

Andrew Kaplowitz

as you can booking the about environment it. talk step and you Carlos, back see

mentioned quarter. the your the flattish book backlog But didn't in you You Fluor's E&C And cancellation suggested overall you that in review remarks. I during in your be to in XXXX. strategic think prepared much

that you the Are the AMECO removed given you've your government on operations, expectations have bit project continued seeing With backlog and for a any delays incremental cancellation. changed from understanding awards?

Carlos Hernandez

– government Well, a the But was had flat quarter E&C seen delayed new what of for proceed. be second But from final fairly I Rovuma now a second probably first to pretty XXXX delay. with reimbursable the with AMECO to exclusion we're obviously, optimistic It's that have notice of little the we at awards going consistent to said. and indicated earlier the the be as projects We will we're with think to or exclusion and the we project XXXX big – pursuing about several those. is businesses. of fairly looking

going we're So much say to lot, lot we're growth, a of I see but either. not that can't deterioration seeing

Andrew Kaplowitz

Thanks color. for that

the of it seems exception you impaired that the of back, made So NuScale. then, most over previous look like years investments when with the the several you management last notable

the impairments? to So, its at improve do seems see any point way you of Fluor needs this setback when you clear risk that And invest further it cash. it then,

move and What something delivery lesson going that model? integrate do take Do To you than do you forward? you do JVs? do you how So forward? do the fewer different

Carlos Hernandez

anticipate of investments. fabrication But we as but our pursued at We're strategy, as you're with the be terms and whether going Well, as cautious valid into I'll we in the to We absolutely that future we success a getting let the yard to answer a that strategy the experience. right future haven't is our to more question strategy in Mike did. expected we investment had early respect of impairments. much

We are modules expecting released yard now in that that to mid will to the early LNG be XXXX.

than yard, past. expect it we that the better has So in be will performing

that, performing restructuring and to have respect at probably paid more than going higher in the Stork but to for a level we're should With XXXX. be investments, we we now it's

right have to we're may investments terms review talk the in impairments. now. them to of made, So yes, a we're making with been its don't be expected or rigorous return. investments better have in we've that dealing future Mike, going its about potential want And but you not made some that

Mike Steuert

Sure. And both impairments is We to impairments we to modest impairments. those were any stork. mentioned did in had of wouldn't on of and for outlook Carlos close XXXX. regard China definitely our as take both majority our at look and are I for remainder fab in for a stork a – think sufficient those as year impairments yard and the fab yard of this and very improving expect impairment We the further move the

think see making to us you're forward move generate going don't and similar investments. cash, I you As

do cash further a and position. at any to But priorities our and return look Andy sheet, our and cash rebuild anticipate certainly how then to get strengthen at of healthy we we balance that's Our stage for balance, to a impairments. are as course currently balance cash this we shareholders cash sheet not healthy

Andrew Kaplowitz

All right. Thanks guys.

Operator

Please next Steven our Fisher question take from from ahead. now We'll UBS. go

Your line is open.

Steven Fisher

Good Thanks. morning, guys.

Mike Steuert

Good morning, Steve.

Steven Fisher

the better the expected. some starting of margin that in the about cite Good how quarter for and in know were margin of And morning. the QX the forecast we think did segment? is kind But The E&C I trajectory than point should we closeouts. the And XXXX? now rate

Mike Steuert

this close for high say we XXXX. we're this out level is detailed how next we again, going year. digital the But I better much be as performing feel at of think setting going and we you a are providing could for February. high But about year as guidance in businesses point through And going will year. it very are are pleased a starting to review exit expectations we with fairly in to performance XXXX

Steven Fisher

Okay. & putting pretty there in That's you be in will the but like new quarter, infrastructure Power helpful. some are the still dollars It fourth projects big like profit I-XXX. seems immaterial

the segment mid more the think? how is showing LNG to it projects segment start I upper single-digit? be other ramp-up, until like you be swing take of margin a to And normalized assume and So, more long Canada for should factor big that the some overall this profitability will which energy to going for

Mike Steuert

take as the a to through a you'll margins. second a while that we to loss XXXX, backlog. exit much to normalized return of XXXX burn quarter in we It's start more for think moving to I projects going But seeing the took

pleased We’re I-XXX with award. very

that as we be We to have DOT and real a with big a moves record track that's great contributor think going Texas forward.

as again we other In out addition, activities go the XXXX. be of will moving throughout backlog forward

Carlos Hernandez

Yes.

projects healthy ones for almost way the of those to those, not through margins projects very just have business, number we improve me is been infrastructure some something around delivering think Steve. in as but expect Let while got We've those add we right that, are which indicated. now and should of of a our margin are the as I work now, and that Mike XX some that

Steven Fisher

wanted to cash Great. asked. And on flow question then just that lastly, I Mike, Jamie the follow-up

a you months XXXX quantify half thinking than net you of it, first were burn less thinking few can will ago? If the you be the a are through that bit

Mike Steuert

if projects. cash away of flow as take been basis, the over you see generating a have of from last as surprised that loss assets generating I've On an these ongoing net the been and our couple business cash yes, sheet. organization a generation. capability focus certainly pleasantly We cash I of well we're other that our throughout non-core just from balance us cash as from on amount really collecting fair investments scrubbing months

Steven Fisher

Thanks Terrific. a lot.

Operator

now our Revich go Please Jerry ahead. take Sachs. Goldman We'll next question from from

open. is line Your

Jerry Revich

morning Good everyone. Hi. Yes.

Mike Steuert

Hi, Jerry.

Jerry Revich

expand I'm on just LNG. wondering Rovuma if could you

it as we've the function Where you with overruns, within engineering about been for selection. so just issues relates able to risk contractor issues, or have you approved the issues on in a getting can of talk those past folks either pockets issues them congratulations Rovuma timing will, design how mitigate and the been change with has had of three So, LNG? if those to orders bid projects

Carlos Hernandez

first changes past of met clearly and that pursuit our the the in project criteria Well, all of all, we'd criteria. in we've selectivity Rovuma mentioned made

strong JGC have in arena. significant very and We in the project; TechnipFMC LNG have two that partners experience

We have been in to the happened what's the had disproportionately customer as with having in for months a number risk with with the allocation general the shifted now engaged project. of of contractor. industry We've as in to discussions far derisking high-level in that our respect customer conversations

a been process. it's very, so And cooperative very

owner. we those, risks but have are risks detail not remaining there There project that's into certain been – in the can't some taken. are go that's a that I in with

all a here. very terms we to addressed stick-build of project and feel that terms -- this is have issues schedule, were In going confident of risk in the productivity we

and this about project. So am matter our And seemingly you, of we a to be showing I positive – are partners. it's so extremely going but

forward it. to So I'm looking

Jerry Revich

were to in background, of project build Carlos, timing seen in been comfort type level just we due productivity to And in around in labor trying timing. of terms obviously, hours, particulars, there part and a we focusing of terms terms your conditions so when our on that cost runs we know it's and function

So, mind? aspect contract won't can you you particular about structure just of the if talk that

Carlos Hernandez

the schedule. in us had we're Sure, project the not is our these past issues aggressive. not schedule. where that key have or to project the at that's by of that with has wouldn't its any the overly criteria actually agree part caused cancelled what now struggled all. one of inadequate going Obviously, we we've been in we that that in And to for wanted a on fact schedule for be that owner to has agree And owner because a projects

the risk. Rovuma have is structure we way best the manage with contract that the that's able that In party risk the lies to

For in robust majeure for including but is security. work a the risks. we really in to our have has of site security track appropriately And we and we're project responsible responsible the is the country. risk places is in is are I procured as force X There security, for not record example, people's mobilizing all pursuit place level. And proven subcontractors, meets the until allocated not country been criteria. a with and subcontractors just acceptable going performed we're for definitions, to not have Tier going client responsible them. earlier We're – not our course at And an where on mentioned to to it

Jerry Revich

a infrastructure you environment partners? terms risk of your of market about infrastructure away then talk from assessment from projects. project multiyear companies opportunities agree on the and of your like? competitors Okay. a looks set few the seen terms with what on inadequate opportunity I assessment you of we've Do your stepping of just color. because larger couple Can the the appreciate in projects the And and

Carlos Hernandez

Yes.

right some projects is projects. capacity sheet between example, PX we're the on differences where mega of exited large the projects to not the or take But have infrastructure, the those have of going team take to balance and the don't we execute. we infrastructure do competitors that have other One the on to for

the walked didn't we recently have have from team. -- right just We because an opportunity away we

projects for we're think and as that going where we're the business opportunities in going million construction which projects where plenty work able to to infrastructure execute to of we complete in in projects range. only in to be smaller heavy I the get example civil the will $XXX for have geographies infrastructure said existing be dollar business we is that's $XXX there especially our million a

a quantity of rate couple where unit Typically, be out risk. we opportunities on those a doing basis, going have we we're to have taking

and So can get than I but think we're ahead work well-positioned infrastructure, execute we're not going in take skis to more our of effectively. we

Jerry Revich

Okay. Thank you.

Operator

now We'll go question Michael Dudas next Please Research. from our Vertical ahead. from take

Your open. line is

Michael Dudas

gentlemen. and that the for, nine making different of on you. trying looking energy to risk different award, past. mining those at your projects the waiting to or that parts or probably were that of that through the look relative like level you the differently you those of rethinking what changing? to does you're renegotiate the that folks those six morning relative Good at to given you're are the waiting from it do next the Thank that then operating portray contracts you're projects bidding sales bit much about quite the on when risk you're for new because Carlos, now how standpoint next looked How – FID you was market organization? mitigation the your months. market, how are the folks relative in a Is in in till And fit what telling done, parts are

Carlos Hernandez

such Rovuma. That bid, issues. all projects telling as Yes. addressed or we're waiting going With project pursue we look, properly execution them. in as that those telling contract What the the to We mitigated tremendous at Negotiated in we're the or that to salespeople is out stage. our on what we're negotiations. excellence projects in. no-bid are, actually new is, as amount and they them of price I'm criteria terms the salespeople them respect either meet scrutiny Obviously, the starts and our well the did of being as LNG received a significant FID for they existing as project, that

And we're a us. schedules that that And can't going risk project we're not And execute think to put agree take we we to we can bid to effectively. on to don't going We're that meet. not we to this management now unduly taken terms organization. the review going conditions and reviewed comes not to and We the team. corporate -- a risk projects, approach well myself approach change very every have project more balanced and to has within when significant

We have list of criteria or package project and criteria a checks whether procedure is of standard not. every met every And operating now in the view the that's proposal or off projects.

So the well. message has been and it's going as delivered and I well think received to serve

Michael Dudas

I quick And Power Carlos. have just appreciate segment what's a of follow up. you business? Infrastructure power & now, that that that the part In

Carlos Hernandez

Yes. Good basically… question, Jerry. That's

Michael Dudas

be Mike. will That

Carlos Hernandez

sorry Mike. Mike. sorry I'm I'm

Michael Dudas

Thank Okay. you.

Carlos Hernandez

off – have substantially a have basically That's business warranty but you're new that right. some power services business resides diversified running new, we any projects but power. in segment. any power There's issues, want services not do the We we warranty in

Michael Dudas

that Is that funnel thought new the process. Understood. the looking comment to the back as next over anticipate to reducing your months project final on And you out several well? is be

Carlos Hernandez

It a probably but it reduce bit, not a way. significant little in will

the We from. but we We be is exclusively, moved chasing. type done do mega largely had almost of more also one we're things also we are work which had of We're chasing projects. mid-cap away after going not –

will reimbursable. of that be mid-cap work And some

it's overall impact to not think So I backlog. on have our a huge going

Michael Dudas

Thank Mike. Thanks Carlos. you,

Carlos Hernandez

Mike. Thanks

Operator

go ahead. Please now from Capital our We'll Eastman Markets. take next Sean KeyBanc from question

open. is line Your

Unidentified Analyst

[ph] for if you ask for the to mining talked questions. that want Thanks Sean. taking us that quantify favorable I on just about This Sangita resolution segment, is the could in Hi. you maybe? for the

Carlos Hernandez

pretty that terms and result arbitration balanced what the we That Yes. years. – And in actually conditions. million That to a client think dispute $XX we with million had I for and several range. was the been of longstanding in or $XX really was is had a in favorable that have

Unidentified Analyst

And should we long-term That's Okay. about think we XXXX potential how and cash operations? CapEx free your as think your continuing about your beyond, for Thanks. helpful. very

Mike Steuert

most rental going is buildings the requirements to support going modest Absent AMECO to business, forward going we for modest We're just very terms our and continuing and going equipment operations. IT investment. office CapEx see there in of our have of our forward be CapEx infrastructure really to

to is be not part our going material So a cash flow equation. it of

Unidentified Analyst

So we it which we have now, than what about as of should should -- like less half you is $XXX think million-ish?

Mike Steuert

less It's than half. much

Unidentified Analyst

understand can't broken business can great. you. pieces? us government share my up you have think? last let one to how process buyers share question going seeing be is us I are for And ongoing Whether Thank be that with transaction? much. and But that you you multiple it it's up than could Or you sale. Okay, on the into you large

Mike Steuert

some depend nature I extent, That, going to more be is not it's likely to But of one going the suspect transaction. offers. on the and to value they're

Unidentified Analyst

That's much. Thanks so for great. Okay, all me.

Carlos Hernandez

said. me correct Let something I

else. $XX I was thinking I think something million Actually I told you the in XX to XX for that of resolution. I more think it's range.

Unidentified Analyst

you. Thank great. That's Okay.

Operator

We'll question open. Please go Michael your is from Bank line our ahead from of Feniger now next take America.

Michael Feniger

for me Yes. Hey guys. Thanks fitting in.

in that customer about conversations I'm side impact curious Just – backdrop? anything how hearing How XXXX, press. the the on Are lot guys in on talk if America. been the you of pipeline? could how you're progressing highlighted you just XXXX encouraged XXXX. Latin mining a are about going strikes given It's that the you

Carlos Hernandez

this Yes. Mike future way. But studies. at it's in this point well. we point, that's Obviously, ongoing our and feasibility impacting impacting. really projects not We're into the have adverse visibility at some doing an FEEDs not as basically

Michael Feniger

sheet you're this without maybe government the notable with I'm we guys proceeds any mean, see wouldn't the how enough. to and thinking the are we any reflect free And the curious getting curious how going about why thinking how offset following going that just had to to there? review? balance the going business just be forward time structure dilution services, that be strategic I'm should I strategic like forward, you guys buyback review following cash you if about Fair flow conversion

Carlos Hernandez

question. American That's was American flow sale even cash a government remaining We great do see not the going of with of business fairly Equipment the the forward generation and solid Equipment. capability way that cash the was managed flow a remaining well. new businesses invested generator, way in our solid equipment. flow it generation was we capability but significant cash a are as Government and

see profile. in significant we So don't a change

we're As our sales we at conservative receive that. better all $X the we than the going do look to proceeds can from can estimate. optimistic we that and was We're billion a

addition, do what with Clearly we [Indiscernible] improve assets. position. with some we as our optimistic In of can we're other cash

to our the if and And investment share cash definitely debt priority our sheet, will to shareholders. some grade, think repurchase. reduce we position proceeds, balance we with point is solid we As we our we is level with that get our consider comfortable returning cash to appropriate what see next comfortable excess remain we're to

Operator

l now from go Bank. move Please Chad next on question to We’ll Deutsche from our Dillard ahead.

Your line open. is

Unidentified Analyst

Kevin Chad. is with This oil just customers? And changed? question quick gas. for conversation risk and lower funnel so, of had adopted the on bidding how Has environment the if the a does changed I Hi. model the project that company behalf the on

Carlos Hernandez

environment. been Kevin since oil been customers risk having having bidding precisely major this and of We've issue the May We've gas about with X. conversations our

for several the a As that you players existed been because of there oil space gas know the years. that left have environment number have the has of in and

some the got telling customers we've us, be we some it. Our now projects. that that together derisk we about. that understand, company a And and They Fluor to seen got need get work of of projects we've talked look to understand successful and already they are we to to

to lump the sum a to be. is model for away, future is know going not has sum but So, we're to going lump be the balanced you not go it

reimbursable starting We we're of and during substantially phase -- lot on are design substantially is a that's something of of sum we're a complete of designs receptivity position once we doing good a out the And the balance clients projects data -- have and now one cost the we've the we're as in then on. some the to very vendor procured things project. lump a that found from lot

as walk think in said the be in we I are large sure. will our away So, that because we overall relationship position of there our capable be from, to will and our ability for so. But projects earlier, a that industry to risks very are as others I we able execute our will positive do the projects, not clients fact managing of with

Unidentified Analyst

was Got along. helpful. pass it it. Thanks. That I'll

Operator

Justin And go from Baird. W. Robert question comes our next from Please Hauke ahead.

line open. is Your

Justin Hauke

got I've more but XXXX a bit everyone. this question, morning Good hopefully Hi. quantifiable. another little one's

and corporate stable -- XX kind the What year. several run the you of do rate that million, you're the million with of next a XX assuming what G&A pretty the level running on quarter business normalized divestitures? think Just comp more was for and is years with the G&A that expense, for restructuring

Mike Steuert

do is we pass gradually identified expectation the some units. $XX are business initial our at effect opportunities. on A But the reside implement process corporate of a a will But to through throughout going swoop. adjustments throughout out decrease them level. take as these announced fell start All and corporate year. one our has all gradually the well at cost lot million programs It'll as we in in of divestitures will as range the do we it $XX that XXXX. They're cost reduction the not other are with to that G&A to that we reduction million line lot reductions be of that reside expect going

Justin Hauke

Okay, Maybe Wanhua size then debooking? was the it? didn't but And of you what just, I the we quantified think great. It's that have helpful.

Carlos Hernandez

Yes. million That was XXX about [ph].

Justin Hauke

Great.

you very Okay. Thank much.

Carlos Hernandez

you. Thank

Operator

time like Ladies conference or back the session. At Mr. this this would closing remarks. additional over to gentlemen, turn and for any to I question-and-answer Hernandez concludes today's

Carlos Hernandez

focused in strategic to our you, consistent reviews and profitability. now our now Thank and restructuring on complete is excellence operator. our With and Fluor operational returning underway. operations

right the their all thank the at to leverage structure right our strategic Fluor and to priorities our We're for the and shareholder our working Our on confident to generate capabilities people, support and you. to talent participating right remain footprint execute together we Fluor. greatly Thanks we call And appreciate today hard you team global ongoing and for and I'm of value. employees have success. to our dedication continued a your Fluor. Thank as for them position work committed and greatest to assets,

Operator

gentlemen, concludes today's and participation. call. Ladies for Thank this your you

disconnect. now may Your

Fluor (FLR) 31 Oct 192019 Q3 Earnings call transcript