Fluor Reports Third Quarter Earnings

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* 2009 EPS Guidance Revised to Range of $3.75 - $3.90
* 2010 EPS Guidance Established at Range of $3.20 - $3.60

IRVING, Texas--(Business Wire)--
Fluor Corporation (NYSE: FLR) announced financial results for its third quarter
ended September 30, 2009. Revenue declined by 4 percent to $5.4 billion,
compared with $5.7 billion in the third quarter of 2008, mainly driven by
decreases in the Oil & Gas and Power segments. Net earnings attributable to
Fluor in the third quarter of 2009 were $162 million, a decrease of 11 percent
from $182 million a year ago. Earnings per diluted share was $0.89, compared
with $1.00 per diluted share for the same period last year. Segment profit for
the quarter was $300 million, down 8 percent from $324 million a year ago. While
three of the five business segments reported earnings growth over 2008, the Oil
& Gas segment profit declined by 8 percent and the Global Services segment
profit was impacted by a $45 million provision relating to a collection issue on
a completed paper mill revamp project. Segment margins were 5.5 percent this
quarter compared with 5.7 percent in the third quarter of 2008.

New project awards for the third quarter were $2.9 billion, compared with record
awards of $8.8 billion a year ago. Consolidated backlog at the end of the third
quarter was $28.0 billion, which is a $2.9 billion decrease from last quarter
and a 23 percent decrease from a year ago. During the third quarter of 2009, the
Company removed approximately $1.2 billion from backlog for a gas processing
expansion project in Russia which has been delayed indefinitely by the client.
Including this delayed project, cancellations and scope reductions since the
beginning of 2009 total approximately $5.3 billion.

Corporate G&A expense for the quarter was $50 million, up from $45 million in
the third quarter of 2008. Fluor`s financial condition remains strong, with cash
plus current and non-current marketable securities totaling $2.4 billion, up
from $2.2 billion a year ago.

"Strong new awards in 2008 and the first half of 2009 have contributed to
Fluor`s $28 billion backlog, allowing us to maintain our selectivity and
discipline when pursuing new prospects," said Chairman and Chief Executive
Officer Alan Boeckmann. "Looking ahead to 2010, we are taking a cautious view of
our markets at this time, but remain hopeful that a broader economic recovery
will develop during the year."

Outlook

Due to the collection issue on the paper mill project, along with the impact of
recent cancellations, scope reductions and delays, the company has trimmed its
2009 earnings guidance to a range of $3.75 to $3.90 per share. For 2010, while
the company is optimistic that the general economy and capital investment levels
will recover, recent delays suggest that the outlook for many of our markets
remains uncertain. As a result, we are establishing initial 2010 earnings
guidance in the range of $3.20 to $3.60 per share.

Business Segments

Fluor`s Oil & Gas segment reported third quarter revenue of $2.9 billion, down
11 percent from the third quarter of 2008, while segment profit declined 8
percent to $189 million. Declines in both revenue and segment profit reflect
declining new award and backlog levels in recent quarters. New awards in the
third quarter totaled $1.2 billion, which compares with a record $5.1 billion a
year ago. Ending backlog for Oil & Gas at September 30, 2009 was $13.1 billion,
down 43 percent from $22.8 billion a year ago. Backlog reflects the impact of
project cancellations, scope reductions and delays of approximately $5 billion
during 2009, including a $1.2 billion gas processing project in Russia which was
removed from backlog this quarter.

Fluor`s Industrial & Infrastructure segment reported a 26 percent revenue
increase to $1.1 billion, and segment profit rose 49 percent to $42 million,
reflecting increases in both the infrastructure and mining and metals business
lines. Segment profit in the third quarter of 2008 included the impact of a $16
million provision relating to the London Connect infrastructure project. During
the third quarter of 2009, the company successfully resolved a dispute on the
London Connect project relating to claims against the client for delays and
additional costs. The settlement allows for the final close-out of all
outstanding issues, with no material impact to the segment`s profit. New awards
in the quarter were $494 million, and ending backlog rose to $9.7 billion, up 14
percent from $8.5 billion a year ago.

Revenue for the Government segment rose by 47 percent to $544 million for the
third quarter of 2009. Segment profit for the quarter increased 34 percent to
$24 million, compared to $18 million a year ago. Growth in results can primarily
be attributed to contributions from the Savannah River project and LOGCAP IV
task orders in Afghanistan. Third quarter new awards totaled $872 million,
compared with $922 million a year ago, including approximately $400 million for
the annual booking of the Savannah River contract and approximately $160 million
for LOGCAP IV task orders. Ending backlog rose to $1.3 billion, up from $886
million a year ago.

The Global Services segment reported revenue of $529 million, down 11 percent
from the third quarter of last year. Segment profit was $0.5 million compared
with $49 million a year ago, with the majority of the decline attributable to a
$45 million provision for the collection issue on the completed paper mill
revamp project in Louisiana. New awards were $183 million, compared with $405
million last year, bringing backlog to $2.4 billion at the end of the third
quarter which is down from $2.7 billion a year ago.

Fluor`s Power segment reported revenue of $317 million, down 40 percent from the
third quarter of 2008. While the segment has continued to replenish backlog
throughout the year, revenue declined as a large coal-fired project in Texas
progressed closer to completion. Due to substantial progress on backlog
projects, segment profit in the third quarter increased to $45 million, up from
$24 million a year ago. The segment booked new awards of $152 million in the
third quarter, bringing ending backlog to $1.5 billion which compares with $1.6
billion a year ago.

Results for the Nine Months

Net earnings attributable to Fluor for the first nine months of 2009 were $536
million, up from $527 million for the first nine months of 2008. Earnings per
diluted share for the nine months rose to $2.93, which compares with $2.86 per
diluted share for the same period last year. Results for 2008 included a pre-tax
gain of $79 million, or $0.27 per diluted share, from the sale of a joint
venture interest in the Greater Gabbard offshore wind power project. Revenue for
the first nine months of 2009 was up modestly to $16.5 billion, compared with
$16.3 billion in the first nine months of last year.

Third Quarter Call

Fluor will host a conference call at 5:30 p.m. Eastern Standard Time on Monday,
November 9, which will be webcast live on the internet and can be accessed at
http://investor.fluor.com. A supplemental slide presentation will be available
shortly before the call begins. The webcast and presentation will be archived
for 30 days following the call. Certain non-GAAP financial measures, as defined
under SEC rules, are included in this press release and may be discussed during
the conference call. A reconciliation of these measures is included in this
press release, which will be posted in the investor relations section of the
Company`s website.

About Fluor Corporation

Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's
most challenging and complex projects. Through its global network of offices on
six continents, the company provides comprehensive capabilities and world-class
expertise in the fields of engineering, procurement, construction,
commissioning, operations, maintenance and project management. Headquartered in
Irving, Texas, Fluor is a FORTUNE 200 company and had revenues of $22.3 billion
in 2008. For more information visit www.fluor.com.

Forward-Looking Statements: This release contains forward-looking statements,
including, without limitation, statements relating to future backlog, revenue
and earnings, expected performance of the Company's business and the outlook of
the markets which the Company serves. The forward-looking statements are based
on current management expectations and involve risks and uncertainties. Actual
results may differ materially as a result of a number of factors, including,
among other things: client cancellations of, scope adjustments to or deferrals
of existing contracts, including our government contracts that may be terminated
at any time and the related impact on staffing levels; delays or defaults in
client payments; the financial viability of our clients, subcontractors,
suppliers and joint venture or teaming partners; failure to obtain favorable
results in existing or future litigation or dispute resolution proceedings;
failure to meet timely completion or performance standards that could result in
higher costs, reduced profits or, in some cases, losses on projects; failure to
receive anticipated new contract awards; failure to achieve projected backlog,
revenue and/or earnings levels; the effects of the current worldwide financial
crisis on us, our suppliers and subcontractors; decreased capital investment or
expenditures, or a failure to make anticipated increased capital investment or
expenditures, by the Company's clients; the Company`s and our clients` ability
to access capital markets; the cyclical nature of many of the markets the
Company serves, which may be impacted by the current economic downturn and
commodity price decreases; increased costs, especially on projects governed by
fixed price contracts; foreign economic and political uncertainties; the
potential impact of certain tax matters including, but not limited to, those
from foreign operations and any audits by tax authorities; and the timely and
successful implementation of strategic initiatives. Caution must be exercised in
relying on these and other forward-looking statements. Due to known and unknown
risks, the Company's results may differ materially from its expectations and
projections.

Additional information concerning these and other factors can be found in press
releases as well as the Company's public periodic filings with the Securities
and Exchange Commission, including the discussion under the heading "Item 1A.
Risk Factors" in the Company's Form 10-K filed on February 25, 2009. Such
filings are available either publicly or upon request from Fluor's Investor
Relations Department: (469) 398-7220. The Company disclaims any intent or
obligation other than as required by law to update its forward-looking
statements in light of new information or future events.

FLUOR CORPORATION
CONSOLIDATED FINANCIAL RESULTS
(in millions, except per share amounts)
Unaudited

CONSOLIDATED OPERATING RESULTS

THREE MONTHS ENDED SEPTEMBER 30 2009 2008
Revenue $ 5,420.5 $ 5,673.8
Cost and Expenses:
Cost of Revenue 5,108.1 5,341.9
Corporate G&A 49.6 45.1
Net Interest Income (3.1 ) (14.7 )
Total Cost and Expenses 5,154.6 5,372.3
Earnings before Income Taxes 265.9 301.5
Income Tax Expense 91.9 112.2
Net Earnings 174.0 189.3
Net Earnings attributable to noncontrolling interest (11.9 ) (7.4 )
Net Earnings attributable to Fluor Corporation $ 162.1 $ 181.9
Basic Earnings per Share
Net Earnings $ 0.90 $ 1.01
Weighted Average Shares 178.9 178.3
Diluted Earnings per Share
Net Earnings $ 0.89 $ 1.00
Weighted Average Shares 181.1 181.1
New Awards $ 2,875.1 $ 8,811.3
Backlog $ 28,047.4 $ 36,536.8
Work Performed $ 5,248.5 $ 5,506.0

NINE MONTHS ENDED SEPTEMBER 30 2009 2008
Revenue $ 16,510.9 $ 16,254.4
Cost and Expenses:
Cost of Revenue 15,532.4 15,341.6
Gain on sale of joint venture interest (79.2 )
Corporate G&A 117.0 146.3
Net Interest Income (11.1 ) (36.9 )
Total Cost and Expenses 15,638.3 15,371.8
Earnings before Income Taxes 872.6 882.6
Income Tax Expense 301.0 331.0
Net Earnings 571.6 551.6
Net Earnings attributable to noncontrolling interest (35.4 ) (25.0 )
Net Earnings attributable to Fluor Corporation $ 536.2 $ 526.6
Basic Earnings per Share
Net Earnings $ 2.96 $ 2.95
Weighted Average Shares 179.4 176.7
Diluted Earnings per Share
Net Earnings $ 2.93 $ 2.86
Weighted Average Shares 181.2 182.7
New Awards $ 15,139.3 $ 20,903.4
Backlog $ 28,047.4 $ 36,536.8
Work Performed $ 16,031.5 $ 15,714.2

FLUOR CORPORATION
Unaudited

BUSINESS SEGMENT FINANCIAL REVIEW
($ in millions)

THREE MONTHS ENDED SEPTEMBER 30 2009 2008
Revenue
Oil & Gas $ 2,925.0 $ 3,302.9
Industrial & Infrastructure 1,105.5 878.5
Government 543.8 368.7
Global Services 529.0 592.9
Power 317.2 530.8
Total Revenue $ 5,420.5 $ 5,673.8

Segment Profit Margin $ and % $ % $ %
Oil & Gas $ 189.2 6.5 $ 205.6 6.2
Industrial & Infrastructure 41.6 3.8 27.9 3.2
Government 23.6 4.3 17.7 4.8
Global Services 0.5 0.1 49.0 8.3
Power 44.9 14.2 24.1 4.5
Total Segment Profit Margin $ and % $ 299.8 5.5 $ 324.3 5.7

NINE MONTHS ENDED SEPTEMBER 30 2009 2008
Revenue
Oil & Gas $ 9,322.9 $ 9,248.4
Industrial & Infrastructure 3,280.1 2,587.2
Government 1,393.6 948.8
Global Services 1,523.3 1,995.2
Power 991.0 1,474.8
Total Revenue $ 16,510.9 $ 16,254.4

Segment Profit Margin $ and % $ % $ %
Oil & Gas $ 570.8 6.1 $ 512.1 5.5
Industrial & Infrastructure 103.8 3.2 178.7 6.9
Government 84.8 6.1 36.5 3.8
Global Services 90.0 5.9 168.6 8.5
Power 91.9 9.3 69.9 4.7
Total Segment Profit Margin $ and % $ 941.3 5.7 $ 965.8 5.9

Less: Greater Gabbard Sale - (79.2 )
Segment Profit Margin $ and % $ 941.3 5.7 $ 886.6 5.5

FLUOR CORPORATION
Unaudited

SELECTED BALANCE SHEET ITEMS
($ in millions, except per share amounts)
SEPTEMBER 30, DECEMBER 31,
2009 2008
Cash and Marketable Securities, including noncurrent $ 2,359.9 $ 2,130.8
Total Current Assets 4,911.0 4,668.5
Total Assets 7,065.3 6,423.6
Total Short-Term Debt 118.6 133.2
Total Current Liabilities 3,328.9 3,162.2
Long-term Debt 17.7 17.7
Shareholders' Equity 3,119.2 2,671.3

Total Debt to Capitalization % (based on Shareholders' Equity) 4.2 % 5.3 %
Shareholders' Equity Per Share $ 17.43 $ 14.71

SELECTED CASH FLOW ITEMS
($ in millions)

NINE MONTHS ENDED SEPTEMBER 30 2009 2008

Cash Provided by Operating Activities $ 540.0 $ 873.9

Investing Activities
Capital Expenditures (174.9 ) (211.8 )
Net (purchases) maturities of Marketable Securities (715.1 ) (197.9 )
Proceeds from sale of joint venture interest 79.2
Other Items 26.0 35.0
Cash Utilized by Investing Activities (864.0 ) (295.5 )

Financing Activities
Repurchase of common shares (113.9 ) -
Cash Dividends (68.2 ) (67.2 )
Repayment of Convertible Debt (15.0 ) (167.1 )
Distributions paid to noncontrolling interests, net of contributions (42.7 ) (14.8 )
Other Items (2.1 ) 28.4
Cash Utilized by financing Activities (241.9 ) (220.7 )

Effect of Exchange Rate Changes on Cash 59.6 (17.9 )

Decrease in Cash and Cash Equivalents $ (506.3 ) $ 339.8

Depreciation $ 134.5 $ 121.3

FLUOR CORPORATION
Supplemental Fact Sheet
Unaudited

NEW AWARDS
($ in millions)

THREE MONTHS ENDED SEPTEMBER 30 2009 2008 % Chg

Oil & Gas $ 1,174 41% $ 5,102 58% (77)%
Industrial & Infrastructure 494 17% 2,156 24% (77)%
Government 872 30% 922 10% (5)%
Global Services 183 7% 405 5% (55)%
Power 152 5% 226 3% (33)%

TOTAL NEW AWARDS $ 2,875 100% $ 8,811 100% (67)%

NINE MONTHS ENDED SEPTEMBER 30 2009 2008 % Chg

Oil & Gas $ 6,135 40% $ 12,405 59% (51)%
Industrial & Infrastructure 5,264 35% 4,953 24% 6 %
Government 1,981 13% 1,108 5% 79 %
Global Services 992 7% 1,715 8% (42)%
Power 767 5% 722 4% 6 %

TOTAL NEW AWARDS $ 15,139 100% $ 20,903 100% (28)%

BACKLOG TRENDS
($ in millions)

AS OF SEPTEMBER 30 2009 2008 % Chg

Oil & Gas $ 13,128 47% $ 22,835 63% (43)%
Industrial & Infrastructure 9,685 34% 8,461 23% 14 %
Government 1,279 5% 886 2% 44 %
Global Services 2,426 9% 2,730 8% (11)%
Power 1,529 5% 1,625 4% (6)%

TOTAL BACKLOG $ 28,047 100% $ 36,537 100% (23)%

United States $ 10,876 39% $ 17,128 47% (37)%
The Americas 6,362 23% 2,834 8% 124 %
Europe, Africa and the Middle East 7,461 26% 14,563 40% (49)%
Asia Pacific 3,348 12% 2,012 5% 66 %

TOTAL BACKLOG $ 28,047 100% $ 36,537 100% (23)%

Fluor Corporation
Media Relations:
Keith Stephens, 469-398-7624
or
Brian Mershon, 469-398-7621
or
Investor Relations:
Ken Lockwood, 469-398-7220
or
Jason Landkamer, 469-398-7222

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