Fluor Corporation (NYSE: FLR) today announced it has signed an agreement
to acquire the International Division of J.A. Jones Construction
Company, which provides design-build and construction services to the
U.S. Government. Fluor's acquisition of the International Division
focuses on its lump-sum embassy project capabilities. The acquisition
will not have a material impact on Fluor's outlook for 2003.
Based in Charlotte, North Carolina, the International Division has an
extensive track record of building and renovating U.S. embassies
worldwide, having recently completed embassies in Croatia, Kenya and
Tanzania. It currently has seven Department of State projects under way
in the following countries: Armenia, Bulgaria, Germany, Republic of
Georgia, Ivory Coast, the United Arab Emirates and Uzbekistan. Its
fiscal 2003 revenue is estimated at approximately $135 million.
To preserve the competitive strength and brand identity of J.A. Jones
Construction Company's International Division, it will be renamed J.A.
Jones International (A Fluor Company), reporting into Fluor's Government
Group segment.
"The Department of State is planning new embassy developments that are
larger and more complex than ever before, designed to provide secure,
functional facilities for American diplomatic and consular missions
overseas," said Alan Boeckmann, Fluor chairman and chief executive
officer. "With an estimated $4 billion budget for embassy projects over
the next five years and the International Division's significant
experience in successfully executing lump-sum projects for the
Department of State, the acquisition of the International Division will
provide a solid platform that will allow us to expand our portfolio of
government business."
"Fluor's business breadth and financial strength, combined with our high
level of customer satisfaction and outstanding project execution skills,
will make J.A. Jones International a powerful competitor in the
government services market," said Mike Gwyn, who will lead J.A. Jones
International's operations.
The International Division's work force of 135 employees, many of whom
are craft workers with secret clearances, will be seamlessly
transitioned to J.A. Jones International. In addition to the Department
of State, J.A. Jones Construction Company's International Division
previously served all branches of the Department of Defense, USAID, as
well as various commercial clients. Its landmark projects include Tower
1 of the Petronas Towers in Malaysia, the tallest buildings in the
world; a 505-unit Naval housing complex in Alaska; a new USAID office in
Peru; and emergency schools for 1500 students at Andersen Air Force Base
in Guam. It has been the recipient of numerous awards, including the
Corps of Engineers' Pacific Ocean Division 2001 Contractor of the Year
and the Navy Industrial Incentive Award.
"Following the strategic acquisition of DEL-JEN that was announced
earlier this year, this move demonstrates an important follow-through on
our corporate strategy to grow and diversify our business portfolio by
making niche acquisitions to strengthen our position in key markets,"
said Ron Oakley, group executive of Fluor's Government group. "We are
committed to delivering Fluor's expertise in engineering, construction,
remediation and maintenance services to the federal government, and this
acquisition further strengthens our penetration across its many
agencies."
Fluor's Government group is structured to capitalize on expanding work
opportunities, as the nation increases spending for defense, federal
facilities and homeland security. With approximately $1 billion of
revenue in 2002 generated from its government work, Fluor provides its
expertise to major federal government agencies, including the
Departments of Energy, Defense, State, Labor and Homeland Security.
Additional information (Q&A) about J.A. Jones International and the
acquisition may be found on Fluor's website, http://www.fluor.com/about/jajones_faq.asp
Fluor Corporation (NYSE: FLR) provides services on a global basis in the
fields of engineering, procurement, construction, operations,
maintenance and project management. Headquartered in Aliso Viejo,
Calif., Fluor is a Fortune 500 company with revenues of $10 billion in
fiscal year 2002. For more information, visit www.fluor.com.
Note: The information contained in this document contains
forward-looking statements regarding the impact of acquisition of J. A.
Jones Construction Company's International Division, the ability of
Fluor to capture and grow business with the United States government,
market outlook, new government awards, backlog levels and the annual
growth rate of J. A. Jones Construction Company's International Division
competition, and the ability of Fluor to make new acquisitions. These
forward-looking statements reflect the Fluor's current analysis of
existing information as of the date of this FAQ. As a result, caution
must be exercised in relying on forward-looking statements. Due to
unknown risks, the actual results of Fluor may differ materially from
its expectations or projections.
Additional information concerning these and other factors can be found
in press releases as well as periodic filings with the Securities and
Exchange Commission, including the discussion under the heading "Item 1.
Business-Other Matters-Company Business Risks" in Fluor Corporation's
Form 10-K filed March 31, 2003. These filings are available either
publicly or upon request from Fluor Corporation's Investor Relations
Department: (949) 349-3909. Fluor Corporation disclaims any intent or
obligation to update its forward-looking statements.
For further information, please contact: Media Relations, Jerry
Holloway, +1-949-349-7411, or Lori Serrato, +1-949-349-7420, or Investor
Relations, Lila Churney, +1-949-349-3909, or fax, +1-949-349-5375, all
of Fluor Corporation.
Media Relations, Jerry Holloway, +1-949-349-7411, or LoriSerrato, +1-949-349-7420, or Investor Relations, Lila Churney,+1-949-349-3909, or fax, +1-949-349-5375, all of Fluor Corporation//Web site: http://www.fluor.com/about/jajones_faq.asp //Web site: http://www.fluor.com /