1124198--3/1/2006--FLUOR

related topics

{cost, contract, operation}

{operation, international, foreign}

{tax, income, asset}

{capital, credit, financial}

{loss, insurance, financial}

{acquisition, growth, future}

{cost, regulation, environmental}

{cost, operation, labor}

{regulation, government, change}

{condition, economic, financial}

{investment, property, distribution}

{debt, indebtedness, cash}

{provision, law, control}

{personnel, key, retain}

{competitive, industry, competition}

{stock, price, share}

{product, liability, claim}

We have seen an increase in our claims against project owners for payment and our failure to recover adequately on these and future claims could have a material effect on us. We are vulnerable to the cyclical nature of the markets we serve. Our continued success requires us to hire and retain qualified personnel. Our use of the percentage-of-completion method of accounting could result in a reduction or reversal of previously recorded revenues or profits. We have international operations that are subject to foreign economic and political uncertainties. Unexpected and adverse changes in the foreign countries in which we operate could result in project disruptions, increased costs and potential losses. Our government contracts may be terminated at any time. Also, if we do not comply with restrictions and regulations imposed by the government, our government contracts may be terminated and we may be unable to enter into future government contracts. The termination of our government contracts could significantly reduce our expected revenues. Some of our projects and new business may be located in environments where anti-corruption initiatives are not followed. We work in international locations where there are high security risks, which could result in harm to our employees or unanticipated costs. We continue to expand our business in areas where bonding is required, but bonding capacity is limited. It can be very difficult or expensive to obtain the insurance we need for our business operations. Our international operations expose us to foreign currency fluctuations that could increase our U.S. dollar costs or reduce our U.S. dollar revenues. Intense competition in the engineering and construction industry could reduce our market share and profits. The success of our joint ventures depend on the satisfactory performance by our joint venture partners of their joint venture obligations. The failure of our joint venture partners to perform their joint venture obligations could impose on us additional financial and performance obligations that could result in reduced profits or, in some cases, significant losses for us with respect to the joint venture. We may have additional tax liabilities. Past and future environmental, safety and health regulations could impose significant additional costs on us that reduce our profits. If we experience delays and/or defaults in customer payments, we could suffer liquidity problems or we could be unable to recover all expenditures. Our recent and any future acquisitions may not be successful. In the event we make acquisitions using our stock as consideration, we could dilute share ownership. Delaware law and our charter documents may impede or discourage a takeover or change of control. As a holding company, we are dependent on our subsidiaries for cash distributions to fund debt payments.

Full 10-K form ▸

1124198--3/1/2006--FLUOR_CORP