Fluor warns of profit drop for Massey Coal

Engineering and construction giant Fluor Corporation warned fourth quarter earnings for the fiscal year may be well short of estimates due to problems with subsidiary Massey.

Staff Reporter

Engineering and construction giant Fluor Corporation warned fourth quarter earnings for the fiscal year may be well short of estimates. The shortfall is mainly due to the AT Massey Coal business, expected to post a full-year operating profit of about $US100 million pretax, below previous expectations. The spin-off of the coal business is expected to be finalised by year-end.

"The company is making steady progress in finalising remaining business portfolio decisions and is on track to complete the proposed spin-off of Massey Coal before the end of this calendar year," said Philip Carroll, chairman and chief executive officer.

"Completion of these actions will enhance Fluor's position to achieve its financial performance goals in the coming year and to capitalize on the continued strengthening of several key markets."

Impacting on the coal business has been a charge for around $US10 million, related to the development costs of a longwall panel at Massey's Upper Cedar Grove operations and a $US3 million charge in the fourth quarter related to a slurry spill.

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