Shares of Fluor (NYSE:FLR) got crushed today, down by 28% as of 2 p.m. EDT, after the engineering and construction company reported disappointing second-quarter earnings results. An ongoing strategic review of the business led to significant one-time pre-tax charges that impacted the bottom line.
Revenue in the second quarter came in at $4.1 billion, well below the $4.7 billion in sales that Wall Street was expecting. Fluor conducted its review during the quarter, which resulted in pre-tax charges of $714 million and contributed to a net loss attributable to Fluor of $555 million, or $3.96 per share. The consensus estimate called for earnings per share of $0.50.
In a statement, CEO Carlos Hernandez said:
During the quarter, we commenced a comprehensive operational and strategic review of Fluor's businesses. These charges reflect our efforts over the past few months to meet with clients, subcontractors, suppliers and our project teams to evaluate and address the status of our current projects. I believe this strategic review, coupled with our increased scrutiny on new prospects, will deliver improved value for our shareholders.
On the conference call, Executive Chairman Alan Boeckmann added that Fluor's board of directors commissioned the review after naming Boeckmann executive chairman and appointing Hernandez as CEO in May. Fluor also withdrew its guidance for earnings per share this year due to the review. The company had previously forecast earnings per share of $1.50 to $2.00.
"In addition, the cost of actions to be taken as a result of our ongoing strategic review may also negatively impact future quarters," CFO Michael Steuert said. "Consequently, we will not be providing guidance for 2019."