AP NEWS

Fluor CEO steps down; company reports multimillion-dollar net loss in first quarter

May 3, 2019

The chief executive officer of Fluor, a major company in the U.S. Department of Energy field, has stepped down.

Fluor on May 2 announced David T. Seaton’s departure, which was effective the day prior.

Seaton will also no longer serve on the company’s board of directors. He became CEO in 2011, board chairman in 2012 and joined the company overall in 1985.

An interim CEO has been named.

Locally, Fluor leads Savannah River Nuclear Solutions, the Savannah River Site management and operations contractor. Fluor also, alongside Westinghouse, bid for a new SRS liquid waste contract, which has since been killed.

Savannah River Remediation, led by AECOM, remains the SRS liquid waste contractor.

Seaton’s leave, among other likely things, sent Fluor shares plunging Thursday morning. Shares did not recover by market close.

Fluor reported a net loss of $58 million for 2019′s first quarter, ending March 31.

The Irving, Texas-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.

Fluor shares have risen 22% since the beginning of the year.