Fluor Corp

Fluor Corporation
Public
Traded as S&P 500 Component
Industry Construction
Founded Oshkosh, Wisconsin (1890)
(as Rudolph Fluor & Brothers)
Headquarters Irving, Texas, United States
Key people

David T. Seaton, Chairman and Chief Executive Officer

D. Michael Steuert, Chief Financial Officer
Revenue Increase $27.577 Billion USD (2012)[1]
Operating income Decrease $733.5 million (2012)[1]
Net income Decrease $456.3 million USD (2012)[1]
Employees 41,193 (2012)[2]
Website www.fluor.com

Fluor Corporation is a professional services company providing engineering, procurement, construction and maintenance, as well as project management services on a global basis. It has been ranked No. 1 on the Fortune 500 list of industries (Engineering, Construction). Its headquarters are in Irving, Texas.[3]

Fluor has also been ranked No. 1 in Engineering News-Record (ENR) magazine's 2012 list of Top 100 Design-Build Firms and No. 2 on its Top 400 Contractors list.[4] Fluor was selected one of the "Global Most Admired Knowledge Enterprises (MAKE)" for the sixth consecutive year in 2011 and named one of America's Safest Companies by EHS Today Magazine in 2011. It ranked No. 1 in Fortune's annual survey of World's Most Admired Companies in the "Engineering, Construction" industry category in 2012.

Fluor has also been named one of the World's Most Ethical Companies by Ethisphere magazine for six consecutive years, 2007-2012. In a 2012 study of defense companies by Transparency International, it was the only company to be rated A for both the amount of information publicly available on its corruption-tackling and on its internal ethics and compliance methods.[5][6]

History

The business was originally established by John Simon Fluor, a Swiss immigrant, in 1890 at Oshkosh, Wisconsin as the 'Fluor Brothers Construction Company and was incorporated in 1924. It established its credentials in the oil and gas industry when it was awarded a contract to build a natural gasoline plant for Richfield Oil in 1922. In 1932 it was awarded its first major refinery contract for Shell Oil at Wood River, Illinois. In 1947 it secured its first major overseas contract for Aramco in Saudi Arabia.[7]

Then, in 1955, it was contracted by the U.S. Air Force to construct Saudi Arabia's Dhahran Air Base.[7] It started offshore operations in 1967,[7] building its first hydrocracker plant in 1968 for the American Oil Company in Texas City.[7] In 1977 it acquired Daniel International Corporation. Fluor and Daniel completed a merger in January 1988 and subsequently adopted "Fluor Daniel" as the name for its main operating subsidiary at that time.[7]

In 1978, the company established its headquarters on an extensive corporate campus located in Irvine, California, which included 1.7 million square feet of office space and a distinctive ten-story mirrored-glass tower. The site was a local landmark and was featured in the 1991 film Defending Your Life.[8] In 1999 the company relocated to nearby Aliso Viejo, California.[9]

In 1981, it acquired St. Joe Minerals, along with its lead, zinc, and coal operations.[10] However, metal prices dropped after the acquisition, and in 1987 it sold its zinc operations to Horsehead Corporation; in 1994 it sold its lead mines to Doe Run Company.[11] In 1995 Fluor acquired ADP, a design and project management business; in 1996 it acquired Marshall Contractors.[12] In 2000 it spun off its coal operations to Massey Energy Corporation.[11] Philip J. Carroll, an alumnus of Tulane University, served as Fluor's CEO from 1998 to 2002.[13][14] The corporation was sued because of "numerous design and construction failure" in north Chile in 2002.[15]

In 2006, Fluor relocated its headquarters to Irving, Texas.[16] In 2009 Fluor entered the solar industry when it was contracted to design a 46 MW solar thermal plant in a partnership with California firm ESolar.[17]

Operations

Fluor works in wide range of sectors, including oil and gas, chemicals and petrochemicals, commercial and institutional, government services, life sciences, manufacturing, microelectronics, mining, power, telecommunications, and infrastructure.

Fluor operates in five major business divisions:

Oil & Gas
primarily serves of upstream oil and gas production, refining of downstream, petrochemical, and chemicals.
Industrial & Infrastructure
business line that focuses on transportation, wind power, mining and metals, life sciences, manufacturing, commercial, telecommunications, microelectronics, and healthcare.
Government
support operations for different U.S. federal agencies such as U.S. Department of Energy, the U.S. Department of Homeland Security, and the U.S. Department of Defense.
Global Services
customized engineering research and services such as process and methods betterment and performance improvement.
Power
business division focused on providing full Engineering, Procurement, Construction, and Management Services for power generating markets that include gas fired, solid fueled, renewable energy, and nuclear.[18]

Major projects

  • $3.8 billion modernization of the BP Whiting refinery: estimated completion mid-2012[20][21]

In May 2008 the Kuwait National Petroleum Company awarded a construction contract to a consortium of Asian companies—Japan's JGC Corporation, South Korea’s GS, SK, Daelim Industrial, and Hyundai—and a consulting contract to Fluor to build an oil refinery, which would be Kuwait's fourth. Kuwait National Petroleum Company announced that it would be operational in 2012 and that it planned on spending $14 billion on the project.[24]

However, in March 2009, the Kuwaiti government informed Fluor to halt construction because reduced oil prices had made the project financially unfeasible. The announcement did not come entirely as a surprise because former Kuwaiti Prime Minister Nasser Mohammed Al-Ahmed Al-Sabah had been mentioning cancellation.[25] Some investment analysts predicted the project's cancellation as early as December 2008.[26] Fluor announced that it would remove $2.1 billion, the remaining value of the contract, from its books.[24]

References

External links

Dallas-Fort Worth portal
Greater Los Angeles portal
Companies portal
  • A video on Fluor's Legacy
  • http://www.fluor.com/about_fluor/corporate_information/Pages/History.aspx?videoaction=launch&videogroup=History&videochapter=0
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