Fluor Corporation (NYSE:FLR) Q4 2019 Earnings Conference Call - Final Transcript

Sep 25, 2020 • 08:30 am ET


Fluor Corporation (NYSE:FLR) Q4 2019 Earnings Conference Call - Final Transcript


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Alan L. Boeckmann

knew that these losses could put serious pressure on the Company's liquidity. As a result, our strategic review was focused mainly on two points: cash generation and derisking our portfolio. And although we have had the misfortune of working through this process under the overhang of COVID-19 and the Board investigation, I'm pleased to say that we have made significant progress as it relates to reducing overhead expenses, closing offices and continuing the process of exiting our AMECO business. In addition, we are focused on prospects in our end markets that complied with our revised pursuit criteria.

And as we were concluding our internal and Board reviews, it became apparent that we needed to accelerate the pace of change within the organization to address the reality of the world as it stands today. So several weeks ago, we challenged the management team to undertake a very significant strategic exercise that I believe will result in a revised and improved approach to our markets and our corporate structure while lowering our risk profile and driving reliable profitability. The entire team is engaged in this and is confident and cognizant of the need to change to meet today's challenges.

To assist management in this, the Board of Directors has established an ad hoc committee to serve as a resource and a conduit for Board expectations and ideas. This will serve to align both in the early part of the process. We intend to share this transformation strategy with the investment community in the fourth quarter. There are however two changes that we are making immediately and will be part of our strategy going forward. Carlos will provide the specifics in a moment, but I can tell you that it affects how we address our markets in both the Infrastructure and the Energy & Chemicals business groups.

Let me close by saying that in a company as storied as ours, few circumstances are without precedent, but I think we can all agree that the events over the last 18 months truly are unprecedented. Our ability to overcome adversity and emerge stronger and smarter has defined our success as a company, and I have no doubt in our ability to do so once again.

With that, Carlos will now talk about what we have encountered in our end markets and what we expect to accomplish in 2020 to deliver value for our shareholders and customers. Carlos?

Carlos M. Hernandez

Thank you, Alan, and good morning, everyone.

Before I begin, I also want to congratulate Joe on his promotion into the role of CFO and likewise Mike for coming out of retirement to help us through some very challenging quarters. This 10-K represents the closing of a particularly long chapter in Fluor's history. Today, we open a new chapter in which we look forward to giving more consistent updates and moving into a regular communication cadence over the coming months.

As it relates to our investigation at Fluor, we pride ourselves on being an ethical company and holding