Fluor Corp's Major Moves: Sells Stork European Business And Nails SEC Settlement

Fluor Corp FLR has agreed to sell its Stork business in Belgium, Germany, the Netherlands and its turbo blading manufacturing operation in the U.S. to industrial services provider Bilfinger SE BFLBF BFLBY. The financial details of the transaction were not disclosed.

This divestiture advances Fluor's strategic initiative to focus on its core businesses and capital priorities.

The 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.

The transaction is expected to be completed in the first half of 2024.

SEC Settlement: The company said yesterday that it has entered into a settlement agreement with the U.S. Securities and Exchange Commission to resolve the previously disclosed investigation pertained to its accounting on two lump sum engineering, procurement and construction contracts.

Fluor 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.

Price Action: FLR shares closed lower by 0.60% at $36.17 on Wednesday.