Fluor Corporation (NYSE:FLR) Q4 2015 Earnings Conference Call - Final Transcript

Feb 18, 2016 • 05:30 pm ET


Fluor Corporation (NYSE:FLR) Q4 2015 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to Fluor Corporation's Fourth Quarter and Year-End 2015 Conference Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the management's presentation. A replay of today's conference call will be available at approximately 8:30 p.m. Eastern Time today, accessible on the Fluor's website at www.fluor.com. The web replay will be available for 30 days. A telephone replay will also be available through 7:30 p.m. Eastern Time on February 24 at the following telephone number, 888-203-1112, the pass code of 5904252 will be required.

At this time, for opening remarks, I would like to turn the call over to Geoff Telfer, Senior Vice President of Investor Relations. Please go ahead, Mr. Telfer.

Geoff Telfer

Thank you, Justin, and welcome to Fluor's fourth quarter 2015 conference call. With us today are David Seaton, Fluor's Chairman and Chief Executive Officer, and Biggs Porter, Fluor's Chief Financial Officer. Our earnings announcement was released this afternoon after market close, and we have posted a slide presentation on our website, which we'll reference while making prepared remarks.

But before getting started, I'd like to refer you to our Safe Harbor note regarding forward-looking statements, which is summarized on slide two. During today's call and slide presentation, we'll be making forward-looking statements which reflect our current analysis of existing trends and information. However, there is an inherent risk that actual results could differ materially. You can find a discussion of our risk factors which could potentially contribute to such differences in the company's Form 10-K, which was filed earlier today.

During today's call, we may also discuss certain non-GAAP financial measures. Reconciliations of these amounts with the comparable GAAP measures are reflected in our earnings release and posted in the Investor Relations section of our website at investor.fluor.com.

Now, I'll turn the call over to David Seaton, Fluor's Chairman and CEO. David?

David Seaton

Thanks, Geoff. Good afternoon, everyone, and thank you for joining us. On today's call, we'll review our fourth quarter and full year of 2015 as well as discuss our outlook for 2016.

Before we talk about our fourth quarter and full-year results, I do want to spend a few minutes to share my perspective on the markets we serve. Global economic growth continues to be weak and commodity prices remain low. We expect economic growth for the year to be similar of the past few years. Yet we also expect commodity prices to stabilize during this year and perhaps even begin to improve in the last part of the year. The lower commodity prices obviously continue to impact our customers' cash flows and, therefore, their ability to fund certain new projects at the same pace as they've done previously. Many of our customers have already announced significant reductions in their capital expenditure budget of 2016. However, Fluor serves a diverse portfolio of industries and regions, which provides the company opportunities even in difficult market environments. While low oil prices may delay some Oil