Fluor, McDermott profits top estimates

LOS ANGELES (Reuters) - Engineering and construction companies Fluor Corp (FLR.N) and McDermott International Inc (MDR.N) both reported better-than-expected quarterly earnings on Monday due to strong demand from the oil and gas industries and the U.S. government.

Shares of both companies rose in extended trade following the announcement, even though Fluor lowered its full-year profit outlook due to recent project cancellations.

McDermott's net profit fell 37 percent, however, due to higher pension expense and a drop in gains from asset sales.

Fluor's net earnings rose 50 percent to $205 million, or $1.12 per share, topping analysts' average estimate of 93 cents a share, according to Reuters Estimates.

The company's shares were up 3 percent in extended trade following the announcement.

In the same period last year, the Irving, Texas-based company earned $137 million, or 74 cents a share.

Revenue rose 21 percent to $5.8 billion, but Fluor's consolidated backlog fell 7 percent to $29.1 billion from a year earlier.

But Fluor warned that project cancellations, including a $2.1 billion refinery in Kuwait and a $580 million deal with Valero (VLO.N) to construct a portion of two hydrocrackers, are pressuring earnings.

For the full year, the company now expects to earn $3.80 to $4.10 per share, down from a prior forecast for $3.90 to $4.20 per share.