Fluor Corporation will sell its AMECO equipment services business along with its government-facing business, according to a report by DallasNews.com.
The actions come after the Irving, Texas-based company reported its worst-ever quarterly performance and replaced its chairman, CEO and chief financial officer. Second quarter results showed the firm “took $714 million in pretax charges from cost overruns, project delays, client disputes and other malfunctions,” reports the website.
CEO Carlos Hernandez told analysts that both AMECO and the company’s government group provided valuable diversification. “It was a difficult decision to divest these quality organizations,” he added, as quoted by the website.
Flour acquired AMECO, formerly the American Equipment Company, in 1977. The Greenville, South Carolina-based company offers rental and other equipment services to several industries throughout the world, including heavy industrial, mining, manufacturing, construction and government.
Flour hopes to sell off the two businesses in early 2020. Other plans include realigning and closing regional offices, which it says will save $100 million a year.