4. Foster Wheeler AG - global engineering and construction contractor and power equipment supplier, with a reputation for delivering high quality, technically advanced, reliable facilities and equipment on time, on budget and with a world-class safety record
10. Due to a competitive Middle East O&G environment and an increase in the proportion of fixed-price contracts
11. Based on lower volume of awards and a tougher bidding environment in much of ‘09-‘10, Oil & Gas margins are likely to be closer to the 4Q10 levels
12. External events such as natural disasters, workers’ strikes or geopolitical issues could create logistical issues at individual job sites, which could lead to project-related charges
13. Negative changes in general economic factors, commodity prices, or input costs could impact demand in commodity-related sectors
14. China has started buying properties in Africa, South America, Australia and elsewhere for their own consumption
15. High demand for E&C companies; however China uses mostly domestic companies with the State’s backing which has prevented Fluor from expanding into the untapped Chinese market
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17. Net income declined to $117 million, $0.65 per share, from $149 million; missing Wall Street's expectations of $0.75 per share
29. Fluor says the worst is over but we can’t rule out further delays or cost
30. Weather delays, low subsea cable and turbine installation rates, and the bankruptcy of contractor Suboceanhave all contributed to delaying the project
31. Greater Gabbard will not finish until at least the spring of 2012. The project is only 72% finished
32. FLR needed to bring in new ships to replace vessels that were being supplied by Subocean
38. We believe there is too much positive sentiment considering slowing backlog in 2011 thus far due to expectations of increasing in later 2011 24 analysts ratings and 0 Sells
40. Similar charts for P/S, Forward P/E, P/B, P/FCF, EV/EBITDA, EV/EBIT, EV/S, PEG
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44. Being that E&C is only 2% of our benchmark, we are about 20% overweight in E&C with Fluor’s position
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46. Prior to the Middle Eastern crisis, oil was growing due to healthy economic situations as higher demand for oil in growing markets drove up prices which benefitted FLR’s business and stock price, but the recent turmoil and rapidly rising oil prices has effected FLR negatively
47. Nigerian elections are this month threat of disruptions to Nigeria's 2.2 million barrels a day of crude output which hasn’t factored into prices yet
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50. Deere is the 10th largest component of Industrials
51. We have no direct exposure to the Heavy Machinery Industry
52. As of now Deere would fit best as a replacement for Fluor
HAP MACT rule impacts FLR not as positively as first thoughtThe EPA notes that 56% of the 1,200 coal units are without advanced SO2 and/or NOx controls. Revenue may not be as material as the signaled technology shift is unfavorable Impact of intense competition on contract pricesFluor operates in markets that are highly competitive and in which a large number of multinational companies compete. In particular, the engineering and construction markets are highly competitive and require substantial resources and investment in technology and skilled personnel. A majority of the company's contracts are obtained through aggressive bidding process, where price plays a decisive part,
