September 24, 2019 / 2:51 PM / 2 months ago

UPDATE 2-Fluor cuts dividend in half, to sell some assets

(Adds background, shares, details)

Sept 24 (Reuters) - Fluor Corp on Tuesday cut its dividend in half and said it would raise $1 billion from asset sale, as its new management streamlines operations after project delays hit the engineering and construction firm’s bottom line.

Shares of the company, which have fallen nearly a third since it reported its second-quarter loss on Aug. 1, were down 8% in morning trading.

The company said it plans to sell its construction equipment rental company, AMECO, and its government business as well as monetize its real estate as it restructures its operations after booking losses in the last two quarters.

The 107-year-old company, which replaced its chairman, chief executive officer and chief financial officer in May, cut its quarterly dividend to 10 cents per share from 21 cents and estimated savings of about $100 million from restructuring.

The company said it expects to take net restructuring charges of $150 million to $200 million in the second half of 2019 and extending into 2020.

Lazard served as an adviser to Fluor on restructuring.

Fluor also said it had elected Thomas Leppert and David Constable as new directors. Peter Fluor, who has been a director since 1984, will not stand for re-election next year. (Reporting by Shariq Khan, Shanti S. Nair and Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)

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