Fluor 2Q net grows 5 pct as new projects awarded

Shares of Fluor Corp. jumped in extended trading Thursday after the engineering and construction company said net income rose 5.1 percent in the April-June quarter, because of strong growth in mining and energy projects.

Prices for metals and fuel surged earlier this year. That benefited many companies whose businesses are related to extracting and processing raw materials. Caterpillar Inc., for example, which makes mining equipment, predicts that mining companies will increase capital spending by more than...

50 percent this year because of strong demand for commodities.

Net income rose to $165.5 million, or 94 cents per share, from $157.4 million, or 87 cents per share, in the same period a year ago. Revenue increased 10.7 percent to $6.03 billion from $5.15 billion.

Analysts polled by FactSet expected earnings of 81 cents per share on revenue of $5.78 billion.

The company raised the lower end of its earnings forecast for the year, despite the recent upheaval in financial markets and fears of a slowdown in global growth, which could cut demand for raw materials. Fluor expects earnings of $3.10 to $3.40 per share, up from a previous estimate of $3 to $3.40. Analysts polled by FactSet expect earnings within that range, at $3.32 per share.

Fluor, based in Irving, Texas, said its new project awards and backlog hit records in the second quarter. Backlog grew to $40.28 billion, while new projects were worth $9.69 billion, a record for a single quarter.

On Thursday the company also announced that its Fluor SKM Iron Ore joint venture was awarded new work from mining giant BHP Billiton in Australia. Fluor booked $2.7 billion from an existing contract with BHP Billiton in its most recent quarter.

Shares jumped $3.86, or 7.1 percent, to $58.45 in after-hours trading. During the regular session the stock tumbled 9.5 percent amid a broader market sell-off.