Dive Brief:
- Fluor announced yesterday an updated organizational and reporting structure that the company says better aligns its business with identified growth markets and company strategy.
- Going forward, the Irving, Texas-based contractor will conduct its operations in three business segments: Energy Solutions, Urban Solutions and Mission Solutions.
- The company also announced that its Maintenance Services segment no longer fits within its core portfolio and therefore, Fluor is initiating plans to sell its Stork business, which maintains large industrial sites in oil and gas and energy markets. Stork employs about 18,000 staff in 100 countries, according to KHL, and was acquired by Fluor in late 2015 for $755 million.
Dive Insight:
The types of projects that the company's three restructured business segments make up are:
- Energy Solutions, which will focus on energy transition, chemicals and traditional oil and gas opportunities.
- Urban Solutions, which will pursue opportunities in mining, metals, advanced technologies, manufacturing, life sciences and infrastructure, and will include Fluor’s professional staffing (TRS) unit.
- Mission Solutions, which will be primarily focused on delivering solutions to federal agencies across the U.S. government and to select international opportunities.
Additionally, Fluor established two newly consolidated functional organizations: Project Execution and Corporate Development and Sustainability.
The reorg comes as a new CEO takes the reins. David E. Constable, a member of the Fluor board of directors, took over on Jan. 1, succeeding Carlos Hernandez, who retired as CEO and a member of the board at the end of the year.
Constable, the company's third CEO in two years, is stepping in after a rocky period in the company. A Securities and Exchange Commission investigation into the firm's past accounting and financial reporting delayed the filing of Fluor's 2019 and 2020 financial statements and in May, the company announced that it received a Justice Department subpoena seeking documents relating to charges reported by the contractor during the second quarter of 2019.
In addition, a special committee of independent members of the board of directors also reviewed past financial information and is sharing its findings with federal investigators. The SEC review is ongoing.
