Fluor announces a change of chief executive in wake of $1.7bn loss

David Constable, a member of Fluor’s board of directors, will take over from Carlos Hernandez as chief executive on 1 January next year. Fluor made a $1.7b loss from revenue of $14.3bn in 2019, which led to a restructuring of the business.

The board delayed the release of its full-year financial report following a Securities and Exchange Commission investigation into past filings.

Earlier this year, the Texas-headquartered engineer cancelled plans for a $1bn sale of its government contracting business. The previous year it announced plans to sell its equipment rental arm Ameco and began a streamlining drive to save $100m.
Constable worked for Fluor from 1982 to 2011, when he left to become chief executive of South African energy and chemical firm Sasol. He returned as a board member in 2019.

Investment website Motley Fool reported that Fluor’s share price rose 12% after the news was announced.
Alan Boeckmann, Fluor’s executive board chairman, said: "This leadership transition is the result of the board’s long-term succession planning process and follows a comprehensive external search.

"David brings a unique combination of deep insight and an outside perspective from his prior experience as chief executive of Sasol. His successful history of leading integrated global operations with a focus on effective risk management makes him ideally positioned to lead Fluor."

Hernandez commented: "While it has been a challenging time for Fluor, we have made significant progress conducting our strategic review, strengthening our operations and completing the restatement of our financial results.

"Particularly, with the onset of the Covid-19 pandemic, I am proud of how our team adapted to the dynamic environment."

Image: David Constable (Fluor/Business Wire)

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