(Reuters) - Fluor Corp (FLR.N) on Tuesday said it will sell its government and equipment businesses following a strategic review that began in the second quarter.
The engineering and construction company expects the sale of its construction equipment rental company AMECO and its government business, along with other actions including the monetization of real estate to generate over $1 billion in proceeds.
The news comes nearly two months after the 107-year-old company withdrew its profit outlook for 2019 and took a $714 million charge in the second quarter citing the review.
The Irving, Texas-based company’s shares have fallen nearly 33% since second quarter results.
The company also slashed its quarterly dividend by more than half to $0.10 per share.
Fluor said it expects the actions announced on Tuesday to help drive cost reduction of $100 million.
Reporting by Shariq Khan and Shanti S. Nair in Bengaluru; Editing by Shailesh Kuber