Big challenges require big solutions.

144 Pages·2013·3.61 MB·English

Big challenges require big solutions.
2012 Annual Report
Table of Contents
Shareholder Letter ................................... 8
Overview ................................................. 12
Oil & Gas ................................................. 14
Industrial & Infrastructure ................... 18
Government ........................................... 22
Global Services ...................................... 24
Power ..................................................... 26
New Awards and Backlog Data ............. 28
Selected Financial Data ....................... 29
Board of Directors ................................ 30
Officers ................................................... 31
Project Photography ............................. 32
FLUOR CORPORATION (NYSE: FLR) is one of the world’s largest publicly traded engineering, procurement, construction,
maintenance and project management companies. Over the past century, Fluor, through its operating subsidiaries, has become a
trusted global leader in providing exceptional services and technical knowledge across a broad range of industries. Clients rely on Fluor
to deliver world-class solutions that optimize their assets, improve their competitive position, and increase their long-term business
success. Consistently rated as one of the world’s safest contractors, Fluor’s primary objective is to develop and execute projects on
schedule, within budget and with excellence. Fluor is a FORTUNE 200 company with more than 40,000 employees operating globally.
Forward-Looking Statements
This annual report contains statements that may constitute forward-looking statements involving risks and uncertainties, including
statements about our projected earning levels for calendar year 2013, market outlook, new awards, backlog levels, competition, the
adequacy of funds to service debt, and implementation of strategic initiatives and organizational changes. These forward-looking
statements reflect the Company’s current analysis of existing information as of the date of this annual report, and are subject to
various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known
and unknown risks, the Company’s actual results may differ materially from our expectations or projections. Additional information
concerning factors that may influence Fluor’s results can be found in the Form 10-K that follows this annual report, under the heading
“Item 1A. Risk Factors.”
The only constant
on this planet
is change.
Change presents challenges – and the greater the
challenge, the more Fluor comes to the forefront. Our
company culture drives us to innovate unprecedented
solutions. Over the past century we have become leaders
in executing large, complex projects on time and on
budget. We have the resources and agility to mobilize
great workforces anywhere they are needed. In fact,
Fluor people are on the ground right now in 73 countries
helping to improve economies and lives.
The world will always present great challenges, and
the work of solving them will never be finished. Fluor will
be there, in the lead, providing big solutions.

More than 7 billion people populate our planet, with the vast majority
congregated in urban areas. Massive infrastructure must
constantly be developed to accommodate population growth.
Worldwide energy demand is expected to increase 35%
by 2030, requiring substantial innovation in fossil-fuel
development as well as step-change progress in alternative
energies such as solar, wind and nuclear.

Colossal projects, demanding abundant materials
and manpower, are needed to produce the commodities
that enhance our standard of living.
A Message
from David Seaton
to our Valued Shareholders
Throughout 2012, Fluor celebrated 100 years of service to our clients, often reflecting on the company’s
historic strengths and values that made such a significant achievement possible. We also focused on the steps
we need to take to position ourselves for the next century of industry leadership.
We learned a great deal about our company and our management commitments as we brought our history and
culture into perspective, and we sharpened our focus on creating growth strategies for the future. Fluor is a strong
and resilient company, and we fully understand the imperative to deliver shareholder value.
We know that we have to earn your trust every day, and delivering profitable growth gives us the
opportunity to do that. Notwithstanding the unexpected charge relating to the adverse arbitration ruling on the
Greater Gabbard Wind Farm project, I am pleased to report that Fluor’s fundamentals remain strong and our financial
performance was significant. During the year, we booked new awards totaling $27.1 billion, and our ending backlog
stood at a sizeable $38.2 billion. Fluor’s revenue grew to a record $27.6 billion, and net earnings attributable to
Fluor were $456 million, or $2.71 per share.
Fluor’s balance sheet remains strong, with year-end cash and securities of $2.6 billion. In 2012, we returned
$518 million in cash to shareholders through dividends and the repurchase of 7.4 million shares, and still maintain one
of the healthiest cash positions in the industry. We expect to continue to return cash to shareholders during 2013.
Our shareholders and clients can have confidence in the underlying strength of Fluor. Our substantial
financial position, global diversification, expansive client relationships, and the expertise that comes from a century of
experience give Fluor resilience in the face of big challenges. This is the legacy of Fluor, one that allows us to provide
customers with best-in-class services and the best people in the industry. The strength and depth of our company,
and our continuous efforts to grow the next generation of industry leaders, position Fluor as an employer of choice,
giving us another strategic and competitive advantage.
These defining characteristics will prove especially valuable in 2013 and beyond, as large industrial projects that
address unprecedented population needs and energy demands become reality.
We anticipate significant long-term growth in the capital spending trends of our major customers, which
will fuel growth opportunities for Fluor. Throughout 2012, we took a number of important steps to position Fluor for
this next growth cycle, focusing on the strategic imperatives of optimizing costs, building and improving relationships, and
growing our businesses and services.
For example, in 2012, Fluor signed a three-year strategic global engineering, procurement, construction and
construction management agreement with Dow Chemical Company. This illustrates our ability to strategically partner
and position the company as a valued resource for clients on the execution of their capital project plans. Fluor was
also awarded a five-year enterprise framework agreement for engineering and project management services for
Shell’s projects in Europe, Africa and the Middle East. Our partnering arrangement with BASF in Asia and Europe
was strengthened with an additional services agreement in 2012, covering all of North America. Fluor currently
has multiple active projects under the BASF partnering agreements, and the Dow alliance has already resulted in a
contract for a propylene production project in Freeport, Texas. Strategic partnerships of this nature position Fluor
for substantial future global opportunities.

8 FLUOR CORPORATION