Fluor Corporation (NYSE: FLR) announced today that the Company has entered into a settlement agreement with the U.S. Securities and Exchange Commission (“SEC”) resolving the previously disclosed SEC investigation of the Company. As reflected in the administrative Order (“Order”) filed by the SEC today, the investigation pertained to the Company’s accounting on two lump sum engineering, procurement and construction contracts. The Company settles the matter neither admitting nor denying the SEC’s findings in the Order.
In connection with the settlement, the Company has agreed to pay a civil penalty of $14.5 million. The Company established reserves sufficient to fund the settlement during 2022 and expects no material earnings effect during 2023.
The SEC’s investigation concerned two projects that are now largely completed and involved historical transactions that the Company restated in September 2020. As noted in the Order, the Company fully cooperated with the SEC in its investigation and has undertaken remedial steps. The SEC settlement follows the previous announcement that the U.S. Department of Justice had ended its investigation into the Company.
“The Company and the Board of Directors are pleased to put the investigation behind us. The SEC investigation concerned accounting errors on legacy risk projects and associated internal controls weaknesses that were remedied in connection with the filing of our 2019 10-K in September 2020. Since that time, Fluor now has a refreshed Board and a new management team that is driving a balanced risk profile and healthy backlog. Bringing closure to the SEC investigation is in the best interests of our key stakeholders, including our shareholders,” said David Constable, Chairman and Chief Executive Officer.
Other News: Fluor Sells Stork European Business
Fluor Corporation (NYSE: FLR) announced today that it has agreed to sell its Stork business in Belgium, Germany, the Netherlands and its turbo blading manufacturing operation in the United States to industrial services provider Bilfinger SE.
This divestiture advances Fluor’s strategic initiative to focus on its core businesses and capital priorities.
This transaction is subject to consultations with and advice from the representative body of the applicable works councils, consultations with the trade unions and receipt of regulatory clearances along with other customary conditions and, subject to these conditions, is expected to be completed in the first half of 2024.
