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UPDATE 2-Fluor cuts 2009 profit outlook, sees drop next year

* Q3 EPS 89 cents vs 90 cents view of Wall St

* Trims 2009 EPS guidance to $3.75 to $3.90

* Sets 2010 guidance at $3.20 to $3.60 per share

* End Q3 backlog $28 bln vs $30.9 bln at end Q2

* Shares drop 6 pct in after-hours trading (Adds share price, executive quote, analyst views, byline)

By Braden Reddall

SAN FRANCISCO, Nov 9 (Reuters) - Fluor Corp FLR.N posted a lower quarterly profit as energy project spending slowed with the drop in oil and gas prices, and the largest publicly traded U.S. engineering company forecast weaker profits for this year and 2010.

Backlog at the end of the third quarter fell to $28 billion, versus $30.9 billion three months before and down 23 percent from a year ago, the company said on Monday.

Fluor removed $1.2 billion from its backlog due to an indefinitely delayed Russian gas processing expansion. The company also took a $45 million provision due to a collection issue with the completed revamp of a paper mill.

Third-quarter net profit fell to $162 million, or 89 cents per share, from $182 million, or $1.00 per share, in the same quarter a year before. Revenue fell 4 percent to $5.42 billion. Analysts had expected 90 cents per share on revenue of $5.49 billion, according to the averages on Thomson Reuters I/B/E/S.

The Irving, Texas-based company trimmed its 2009 earnings forecast to $3.75 to $3.90 per share from a range of $3.80 to $4.10, which it had reaffirmed in August. The company set 2010 profit guidance at $3.20 to $3.60 per share.

Analysts, on average, had been targeting profits of $3.85 per share for this year and $3.58 for 2010.

“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,” Chief Executive Alan Boeckmann said in a statement.

Fluor also said it had named David Seaton, currently senior group president for energy, chemicals, power and government, as its chief operating officer.

The Irving, Texas-based company said last week it had been chosen to engineer and manage the construction of a key part of the Bergermeer project, a big Dutch gas facility that is expected to cost more than $1 billion. [ID:nN03458208]

The company’s shares were trading at $45.10 in late trading after closing 5.75 percent higher at $48.01. (Reporting by Braden Reddall; editing by Steve Orlofsky and Andre Grenon)

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