Annual Report I

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7

Officers:

DONALD W. DARNELL, chairman of the board

J. SIMON FLUOR, president

J. ROBERT FLUOR, executive vice-president

JAMES P. WISEMAN, vice-president

MELVIN A. ELLSWORTH, vice-president

FRANCIS E. FISCHER, secretary-treasurer

JOHN T. SCHULER, assistant secretary

J. G. BOUNDS, vice-president, Middle-East area

C. H. DIETER, vice-president, western area sales

W. P. DOWNEY, vice-president, domestic construction

J. W. ELIZARDI, JR., vice-president, Mid-Continent area sales R. L. MERRICK, vice-president, engineering division

M. MONCRIEF, vice-president, Mid-Continent division

M. STEPHENS, vice-president, products CliViSi0II

LEE VAN HORN, vice-president, research and development J. E. WINN, vice-president, foreign construction

ANNUAL MEETING: The annual shareholders' meeting

of The Fluor Corporation, Ltd., is held on the second Monday in January at 10 a.m. at the executive

offices of the home plant.

General Counsel:

Auditors:

Stock Transfer Agent:

Stock Registrar:

Directors:

DONALD W. DARNELL, chairman

j SIMON FLUOR,

president, The Fluor Corporation, Lid.

j ROBERT FLUOR,

executive vice-president, The Fluor Corporation, Ltd.

JAMES P. WISEMAN,

vice-president, The Fluor Corporation, Ltd.

FRANCIS E. FISCHER,

secretary-treasurer, The Fluor Corporation, Ltd.

DUDLEY E. BROWNE,

comptroller, Lockheed Aircraft Corporation

SHIRLEY E. MESERVE,

senior partner, Meserve, Mumper, and Hughes

JAN OOSTERMEYER,

formerly president, Shell Chemical Corporation

DONALD ROYCE,

president, William R. Staats and Company

FRANKLIN S. WADE,

chairman of the board, Southern California Gas Company

Meserve, Mumper, and Hughes, Los Angeles, Calif.

Alexander Grant SE Company, Los Angeles, Calif.

Security-First National Bank, Los Angeles, Calif.

California Trust Company, Los Angeles, Calif.

HOME OFFICES AND PLANT: 2500 South Atlantic Boulevard, Los Angeles 22, Calif.

"fl

The Fluor ENGINEERS

PLUOR CORPORATION CONSTRUCTORS Corporal bu, MANUFACTURERS

Ltd.

63 YEARS OF PROGRESS: 1890-1953

Annual Report fo the fiscal year ended October 31

1953 CONTENTS

Consolidated income statement 4

Business at high level 5

Shareholder relations 7

Engineering and construction 7

Foreign work 7

Company products 8

Research and development 9

Fluor employees 9

New facilities 1.0

Organizational changes Io

Future outlook 1.1

Consolidated balance sheet 12

Building organizational strength 16

Offices and plants 18

3

The Fluor Corporation,

Ltd., and Subsidiaries-

Comparative Consolidated Statement of Income

and Retained Earnings for the years ended October 31

/953 /952THE CORPORATION RECEIVED FROM

Net Sales

Construction revenueincluding unbilled charges

on uncompleted construction contracts $ 92,702,304 $72,143,015

Product sales 12,980,930 8,548,807

Royalties, discounts and other 218,461 214,642

Total sales and revenue $105,901,695 $80,906,464

WHICH WAS USED FOR

Wages and salaries $ 37,528,350 $29,516,181

Materials and services purchased from others 62,076,190 45,969,769

Depreciation, maintenance and repairs on

plant and equipment 1,153,444 775,061

Contributions to employees' benefit trust funds 690,879 814,352

Interest on indebtedness . . . . 129,216 108,376

State, local and miscellaneous taxes 272,350 155,670

- Total costs and expenses $101,850,429 $77,339,409

THIS LEFT INCOME FROM OPERATIONS BEFORE INCOME

TAXES AND MINORITY INTEREST OF $ 4,051,266 $ 3,567,055

THE CORPORATION'S INCOME TAXES WERE

Federal income taxes 1,450,500 1,764,300

Canadian and Saudi-Arabian income taxes 498,719 61,472

THE MINORITY INTEREST IN THE EARNINGS OF A

CANADIAN SUBSIDIARY WAS 42,219

$ 1,991,438 $ 1,825,772

THIS LEFT NET INCOME FROM OPERATIONS OF . . $ 2,059,828 $ 1,741,283

TIIE CORPORATION PAID DIVIDENDS OF 600,000 420,000

AND RETAINED IN THE BUSINESS FOR FUTURE NEEDS $ 1,459,828 $ 1,321,283

RETAINED EARNINGS AT THE BEGINNING OF

THE YEAR WERE . .. . 6,575,771 5,254,488

RETAINED EARNINGS AT THE END OF THE YEAR WERE . $ 8,035,599 $ 6,575,771

The Auditors' Certification and Notes to Financial Statements, pages 14-15, should be read in conjunction with this Consolidated Statement of Income and Retained Earnings.

4

To Our Employees and Shareholders: The fiscal year which ended October 31, 1953, not only saw your Corporation surpass $100,000,000 in total bill­ings for the first time in the 63-year life of the Com­pany, but also brought expansion in new areas which give Fluor true international opportunities for the years ahead.

Looking to the rapidly developing foreign market, new offices were opened in Toronto, Ontario, and Lima, Peru. Both offices are the result of long-range planning designed to assist Canadian and South American indus­trialists in plant expansion programs that hold consid­erable promise in the world economy.

The Toronto office is headquarters of The Fluor Cor­poration of Canada, Ltd., and will work closely with H. G. Acres & Company, Ltd., a new Fluor affiliate. The Acres Company, which has a staff of 300 engineers, draftsmen, and field employees, at Niagara Falls, On­tario, will handle future engineering work for Fluor of Canada.

A new district sales office was also opened in Phila­delphia, Pa., to serve the rapidly growing Delaware River Valley industrial area.

With these new offices, we are in a much better posi­tion to keep pace with petroleum, power, and chemi­cal industries in both hemispheres, aided by previously established sales representatives in London, Paris, Cal­gary, and Beirut, Lebanon, as well as twelve principal cities in the United States.

Business at High Level Continued growth and stability of company enterprises are reflected in 1953 completed business which amount­ed to $105,901,695 compared to $80,906,464 last year, and $52,156,442 in 1951.

Net income after taxes came to $2,059,828, or $4.12 per share on the 500,000 shares of common stock, as against $1,741,283, or $4.35 per share on the 400,000 shares outstanding in 1952. This compares with the consolidated net profit of $1,137,081, or $2.84 per share, reported in 1951.

Taxes on income this year totalled $1,949,219, com­pared to $1,825,772 in 1952.

5

,

Fluor's Gross Income carne from: Petroleum installations 60.19 Government work Manufactured products Power plants Chemical plants Miscellaneous

13.59 12.28 8.41 3.02 2.51

I 1(

2.4 -

and was spent for: Purchase of materials and services 59.03 Wages and contributions to

employees' trust funds 36.09 Income taxes 1.89 Retained for future needs 1.38 Depreciation and maintenance 1.09 Dividends to shareholders .57

4

100

90

Total Sales 70

TEN-YEAR COMPARISON: 1944-1953 80

40

20

2 8

10

Net it1COMC 1.77 1.72 .17 4.43 5.56 3.75 1.80 2.17 2.16 1.95 as a percentage of

I

total sales

1944 1945 1946 1947 1948 1949 1950 1951 1952 1953

Consolidlted statement, including subsidiaries

While these figures reflect a slight downward trend in percentage of earnings as .against the increased bill­ings, it will be noted that the greatest impact on profits resulted from the higher costs of operation, heavy taxes, and the greatly increased payroll as illustrated on page 5. The payroll increase is particularly noteworthy as wages and salaries paid to employees, including Con­tributions to trust funds, totalled $38,219,229, com­pared to $30,330,533 in '52.

Shareholder Relations The growing list of company shareholders was aug­mented during the year by nearly 1000, bringing the total number of shareholders to 2147 as of October 31, an increase of 78 per cent over the 1203 of last year.

Dividends paid during 1953 totalled $600,000, or $1.20 a share, compared to $420,000, or $1.05 per share, in 1952. Again, this is indicative of consistent growth as 1951 dividends amounted to only $320,000, or 80 cents per share.

Engineering and Construction Sales continued to keep pace with completed engineer­ing and construction work during the year with the result that unfinished business at the close of 1953 amounted to $88,000,000.

For tbe first time, engineering and constniction work exceeded $92,000,000, as against $72,143,015 in 1952. Petroleum construction and services constituted 60 per cent of the total volume, while the chemical and elec­tric power fields accounted for 12 per cent of the year's business as indicated by the chart on page 5.

Aside from the foreign work referred to in the next column, the Industrial and Governmental Projects Divi­sion performed additional architect-engineering serv­ices for the Idaho Operations and Santa Fe Operations offices of the Atomic Energy Commission; the U. S. Navy in California; the Corps of Engineers in Alaska and Utah; and for the U. S. Air Force in Tennessee. U. S. government work completed during the year amounted to 14 per cent of the billings.

Domestic construction enjoyed a banner year with some 30 installations completed in a dozen states, and a score more launched for completion during 1954.

Crude topping plant in Arabia

These included new petroleum plants and expanded facilities for Socony-Vacuum, Phillips, Tide Water Associated, Sinclair, Shell, Richfield, Sunray, Standard, Union, Warren Petroleum, American Liberty, Can­adian Oil, Imperial Oil, and Shell Oil of Canada.

Completion of power plant extensions for the Kansas Power and Light Company at Lawrence, Kans.; Iowa Public Service at Carroll, Iowa; and the California Electric Power Company at Highgrove, Calif., were also accomplished during the year, with a new fourth unit of the latter plant scheduled to start in the near future. An extension for the Illinois Power Company will be completed at East Alton, Ill., in January.

Foreign Work Launched in 1948 'hen Fluor first entered the foreign field with work for the Arabian American Oil Company in Saudi Arabia, the Foreign Construction Division has expanded steadily as indicated by the chart ( page 10) setting forth the number of employees at jobsites over­seas. These statistics include men working on the oil handling facilities, industrial and housing contracts still under way for Aramco, as well as the employees on the Corps of Engineers, U. S. Army, project.

Foreign activities of the Corporation have also in­cluded work in Colombia, South America, where con­struction was nearing completion at the close of the year on an absorption plant and crude stripping facile

ities for the Colombian Petroleum Company in the Bar­co Concession. In the Virgin Islands, we have two high schools in progress for the U.S. Department of the In­terior, as well as multiple housing projects under way for the Virgin Islands Housing and Redevelopment Authority at St. Croix. In addition, field work will be started early in '54 on an oil refinery at San Juan, P. R.

In the Dominion of Canada, Fluor is engaged on major projects at Regina, Saskatchewan, and Vancou­ver, B. C.

Company Products Surpassing all previous records, total product sales mounted to $12,980,930 compared to $8,548,807 in 1952. As in the past, cooling tower sales led the Division, and included a million dollar installation for the De­partment of Water and Power of the City of Los An­geles. Plans for further expansion will ultimately make it the largest cooling tower installation in the world.

To supply the parts for increased cooling tower busi­ness, the Los Angeles mill processed a record volume of lumber-13,350,000 board feetor 445 carloads. This is enough lumber to build a city of 2500 homes.

The metal products department added new equip­ment and personnel at both the Paola ( Kans. ) and Los Angeles plants. The Paola plant doubled its em­ployment and expanded its capacity rapidly to keep abreast of orders for fabricated piping, pulsation damp­

eners, gas cleaners, mufflers and Fin-Fan heat ex­changers. Improvements in the Los Angeles shop were attributable mainly to sales of fabricated piping and pulsation dampeners.

Fluor products are now being extensively used throughout North, South and Central America, in Asia and the Middle East, as well as in England, Sweden, and Holland.

Research and Developmento During the year, research and development on prod­

4 ucts and processes were expanded in scope. The addi­tion of a new modern laboratory and pilot plant facili­ties will intensify this phase of our business.

We are constantly seeking to improve our products and diversify our present lines. Particular attention has been given to developments in air cooled extended surface heat exchangers and pulsation dampeners, and to studies of new and novel methods of evaporative water cooling. Development activities have included the consummation of exploitation agreements covering new processes in the fields of petroleum refining and petrochemicals.

Our research staff is well qualified by training and experience to make contributions to the rapidly expanding natural gas, chemical and petrochemical industries. This is accomplished by "seed" research for the improvement of processes through cooperative

ar. '

3

Gasoline fractionating unit Steam electric power plant8 9

i 053 -­r I r­

1952

1951 NMI= 1950 1111111 Number of shareholders

1949 Ell JIMIL

0 2 4 6 88 10 12 14 16 18 20 22 in hundreds

work with customer companies in the creation of new plants and products.

Fluor Employees In our many widely scattered locations, Fluor reached a peak of 7300 employees compared to the 6700 re­ported last year. In addition to the 1700 at the home plant, other work areas have the following number: IVIid-Continent Division, Houston, 189; Paola ( Kans. ) ) shops, 215; U. S. and foreign sales offices, 195; Saudi Arabia, including Middle-East Fluor, S. A., 658; othcr subsidiaries, 279; construction field workers, inch I ding cooling tower erectors, 4078.

The above totals do not reflect the national field workers employed by Fluor and Fluor subcontractors at foreign jobsites, which reached a peak of 4700 as shown in the chart on page 10. We have made every effort to use as many local employees as possible wherever we operate.

Hundreds of our employees have been with the com­pany for many years. This is reflected by the 1526 who are beneficiaries in Trust Fund No. 1. As of the close of the year, an additional 1612, or a total of 3138 em­ployees, were participants in Trust Fund No. 2.

Cooling tower installation Welder at work at l'aola ( Kans. ) shops

New Facilities To alleviate crowded quarters in Los Angeles, arrange­ments were completed for purchase of a new research and development building located in the Whittier Area, only 20 minutes by car from the main plant. Situated on a five-acre site, the building has 35,000 square feet of floor space and will accommodate the Research and Development Division now housed at the home plant as well as the Products Division which is temporarily located in downtown Los Angeles. The Whittier property was purchased by the two Employ­ees' Benefit Trust Funds as an investment, and the par­ent company has negotiated a long term lease to use the facilities.

After obtaining the new research facilities, the previ­ously announced $600,000 research structure was read­ily redesigned into a general office building which will provide facilities for 300 people, and will fulfill a need of long standing as 25 per cent of the employees at our home plant are still housed in temporary structures.

Organizational Changes During the year we considered Fluor very fortunate to be able to acquire the services of Jan Oostermeyer as a new member of the Board of Directors. Mr. Oos­termeyer served as president of the Shell Chemical Corporation until June, 1953.

Domestic sales efforts in the Mid-Continent area were strengthened by the appointment of a vice-presi­dent and director of sales for tbe territory served by that Division, and improved service for product cus-

New building under construction in Los Angeles

7 Fluor employees

6

4

3

2

1

o

1949 1950 1951 1952 1953 O

5

Workers on foreign projects 4

n Fluor employees from U.S.A.

0 Nationals employed at jobsites

3

O

1949 1950 1951 1952 1953

New research and development bitilding

tomers was secured through the assignment of field service engineers to both the Houston and Tulsa dis­trict offices. A new administrator was also appointed to coordinate the activities of all of the foreign sub­sidiaries.

Improvements in organizational methods are con­stantly being considered as we survey the departmental functions in all plants and offices. To this end, a number of operating manuals have been developed covering the accounting, engineering, construction, and manage­ment phases of our activities, with others planned to follow during the coming year. A new development program has also been undertaken through classroom offerings in management training and the orientation of new drafting-engineering-con st rt iction personnel.

Future Outlook Prospects for new business during 1954 appear excel­lent, and there is every indication that billings will be substantial, perhaps equal to or even greater than the record total we enjoyed in 1953. This optimistic view­point is based on receipt of numerous new contracts from petroleum, chemical, and power companies dur­ing the first month of the new fiscal year.

Although the world political scene is still unsettled, we look for the parent company as well as our subsidi­aries to continue to expand in their respective areas of operation. We llave been endeavoring to confine our efforts in the foreign field to countries which have a stable government.

Looking back over the accomplishments of the past fiscal year, we want to again express our gratitmnli to all employees and shareholders for their diligent work and continued interest in the many activities of the Corporation. It is only by and through such united effort that we will continue to progress. We earnestly solicit your continued support as we begin another year together.

Submitted for the Board of Directors,

C ii A I 6 NI A ti, BOA R!) OF DI li ECTOBS P nEsinENT

Therrnofor catalytic cracking unit

A

"It

COMPARATIVE CONSOLIDATED BALANCE SH E E

CURRENT ASSETS

Cash .7 r: r.,

Accounts receivable e

Federal income tax refunds' receivable ,,,,

Unbilled charges on uncompleted contracts'

Inventories , . Prepaid insurance, taxes and deposits .

Total current assets It

FUNDS RESTRICTED' TO GOVERNMENT CONTRACTS

PROPERTY, PLANT AND EQUIPMENTat cost

Landnet kEri w2

Buildings and land improvementsnet

Machinery and ,equipmentnét t,

OTITER ASSETS

Goodwill , F

October. 31, 1953

.

4,

,

a,

,I.,

is

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5'

,,,,,

e

on

,

I5

F.

5

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4

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' $ 2,180,755

9,653,063

144,943

6,616,904

3,185,444

230,008

'0 0'

$f

$22,011,117

71,732

e

e a

Ur

.140,038

1663,O64

2,879,874

$ 4,682,976

."V '.11 g. - 450,000,

Patents, cash value ,Cif life insurance and sundry N 5 e 5. 98,561

$ 548,561

$27,314,386

October 31, 1952

$ 1,404,698

8,296,255

149,725

4,383,710

2,765,650

84,183

$17,084,221

483,829

130,398

1,361,964

1,788,009

$ 3,280,371

79,052

$ 79,052

$20,927,473

The Fluor 4

Corporation,Oc' tol; er .31, 1953 and 1952

Ltd. and Subsidiaries

- CURRENT LIABILITIES

Notes payable Accounts payable

.Customers' deposits, advance payments and fee adjustments'

Accrued liabilities , Total current liabilities

Federal taxes on, income

, tg

k

' tL

ADVANCES ON GOVERNMENT CONTRACTS!

NONCURRENT LIABILITY

Note payable=noncurrent maturities .

DEFERRED INCOME

Unearned fees on construction' contracts

October 31, 1953

S. 300,000

7,018,887

703,781

g.1 1,903,733

2,742,532

. $12,668,933

71,732

2,700,000

342,042

October. 31, 1.952

S, 225,000

5,323,398

719,457

1,906,286

2,666,236

$10,840,377

483,829

1,125,000

302,464

MINORITY, INTFREST IN SUBSIDIARY' 442,630, e '13 't -V A it

CAPITAL

Contributed capital Capital stockauthorized 1,000,000 shares of $2.50 par value;

issued and outstanding: 1953-500,000 shares; 1952 400,000 shares . . . .. , .. 1,250,000 1,000,000'

Capital contributed in excess of par value of capital stock . . 1,803,450 600,032

Retained earnings , rt. e t 8,035,599 6,575,771

Total capital , 'V . N . , $11,089,049 $ 8,175,803

' $27,314,386 $20,927,473

The "hotes to financial statements" 6n the 'following page are an integral part of this comparative consolidated balance sheiit

12

NOTES TO FINANCIAL STATEMENTS Year ended October 31, /953

NOTE APrinciples of consolidation

The consolidated balance sheet of the company at October 31, 1953 includes the accounts of the following subsidiaries: Fluor Maintenance, Inc., Middle-East, Inc., Middle-East Fluor, S.A., The Fluor Corporation of Canada, Ltd., Fluor Peruana, S.A. and H. G. Acres & Company, Limited. All the subsidiaries are wholly-owned except H. G. Acres & Company, Limited which is 60% owned by The Fluor Corporation of Canada, Ltd. The consolidated statement of income and retained earnings for the years ended October 31, 1953 and 1952 includes the operations of these subsidiaries for the respective periods of ownership by the company.

All intercompany accounts and transactions have been elimi­nated in consolidation.

The excess of the company's equity in the net assets of the subsidiaries over its investment therein has been included in the retained earnings in the consolidated balance sheet.

NOTE BAccounting treatment with respect to construction contracts

In general, the company follows the policy of recognizing income on construction contracts in the proportion that aggre­gate expenditures incurred bear to the total estimated cost of the work being performed under the contracts. Fees billed in advance to customers under the terms of the contracts are considered to be deferred income and are not recognized as income until earned.

NOTE CFunds restricted to government contracts

Represents unexpended balance of funds advanced by a gov­ernment agency for use only on specific contracts.

NOTE uFederal taxes on income

Federal income tax returns of the company have been examined for all years to and including the year ended October 31, 1950. In connection with the examination of the return for the year ended October 31, 1950, the examining officer approved refund claims in the amount of $140,951 which appear in the accom­panying balance sheet as a current asset.

NOTE ENet assets of foreign subsidiaries

Assets and liabilities of The Fluor Corporation of Canada, Ltd. and its subsidiary H. G. Acres & Company, Limited, have been included in the accompanying balance sheet in Canadian dollars because of the small difference in the rate of exchange. The net assets in Canada included in the balance sheets at October 31, 1953, amounted to approximately $952,925.

Assets and liabilities of other foreign subsidiaries are included in the balance sheet at the official rate of exchange. Net assets of Middle-East Fluor, S.A. and Fluor Peruana, S.A. amounted to $643,720 and $51,710 respectively at October 31, 1953,

NOTE FNoncurrent liability

The company negotiated a 10 year, 4% unsecured loan in the amount of $3,000,000 with two insurance companies. The note agreements, dated October 12, 1953, will be discharged by semi-annual payments of $150,000, plus interest, commencing March 1, 1954 and extending to September 1, 1963 subject to contingent and optional amortization provisions. The company is also required to maintain a certain working capital and meet other financial requirements.

The company is required to maintain net current assets of $5,000,000 or 200% of the outstanding notes whichever is greater. Also the current assets must not be less than 150% of the current liabilities.

Further, the company is prohibited generally from paying cash dividends aggregating in excess of the net earnings of the company ( as defined) after October 31, 1952.

Under these restrictions the company is prohibited from paying cash dividends in excess of approximately $672,000 at October 31, 1953.

NOTE GContingent liability

The California State Board of Equalization in 1951 filed a Notice of Assessment in the amount of $96,195 for sales tax on certain products manufactured in California and shipped to customers outside the State. This assessment was for a 3Y: year period ended December 31, 1950. The company paid the assessment under protest in September 1953. A claim for refund will be filed. The management believes the company is not liable for such tax and no provision has been made for any additional liability which may have been incurred subsequent to December 31, 1950. An amendment to the Sales and Use Tax Law effective September 9, 1953 is believed to eliminate the provision under which the assessment was levied but no deter­mination has been made as to its retroactivity.

NOTE HRenegotiation

The company has made sales under certain contracts with the government which may be subject to the Renegotiation Acts of 1948 and 1951 and amendments thereto. Such sales for the years ended October 31, 1951 and 1952 approximated $9,500,­000 and $15,700,000 respectively. Renegotiable sales for the year ended October 31, 1953, are estimated at $14,800,000. Renegotiation proceedings are now in progress for 1951 and 1952 but it is not known whether any refunds to the govern­ment will be requested. It is the opinion of the management that no provision for renegotiation is, at present, required.

NOTE ISales of shares of capital stock

The company has made a tentative agreement for the sale of 100,000 shares of capital stock in order to provide additional working capital. If this sale is consummated the company will realize approximately $1,500,000.

'4

AUDITORS' CERTIFICATION

CHICAGO NEW YORK

loS ANGELES ALEXANDE R GRANT 8c COMPANYOTHER PRINC3NAL CERTIFIED PUBLIC ACCOUNTANTS

CITIES 756 SOUTH BROADWAY

LOS ANGELES 14, CALI FORN IA

TRINITY le.

Board of Directors The Fluor Corporation, Ltd.

We have examined the consolidated balance sheet of THE FLUOR CORPORATION, LTD. ( a California corporation))

and its subsidiaries as of October 31, 1953 and the related consolidated statements of income and retained earnings for the year then ended. Our examination, which did not include the accounts of one minor foreign subsidiary, was nade in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and other such auditing procedures as we considered necessary in the circumstances. As to the one foreign subsidiary ( H. G. Acres & Company, Limited) we have accepted the report of examination furnished us by independent Chartered Accountants.

In our opinion, the accompanying consolidated balance sheet and consolidated statements of income and retained earnings present fairly the consolidated financial position of THE FLUOR CORPORATION, LTD. and its subsidiaries at October 31, 1953 and the consolidated results of their operations for the year then ended, in conformity with generally accepted accounting principles applied on a consistent basis.

Los Angeles, California December 7,1953

15

BUILDING ORGANIZATIONAL STRENGTH THROUGH EMPLOYEES

Board Chairman D. W. Darnel presents 30-year pin to Paul Jerde Wilbur Long, chief of engineering services, conducts supervisory training class

f

COMMUNITY RELATIONS

Company interest in community affairs remains high as several hundred employees actively participate and serve as officers in civic, lodge, state, and national groups, including the Boy Scouts, P.-T.A., Toastmas­ters International, etc. Many are also active in church and school functions, conducting classes and appear­ing as speakers on various programs. During 1953 a colored movie entitled "Red Towers" was filmed for showings at industrial meetings, service club lunch­eons, and community gatherings.

Welfare agencies throughout Southern California al­so continue to benefit from the annual Employees' Com­bined Charity Drive, proceeds of which amounted to more than $34,000 this year. Fluor is one of the firms in the Los Angeles area who loan a full-time employee to the Community Chest during the campaign period.

PUBLICATIONS

The Sales Division issued a variety of special pam­phlets relating to company products, plus several bro­chures upon the completion of major construction projects. Regular newsletter type publications keep sales and engineering personnel informed of company developments while a weekly newspaper known as Shamal is circulated to employees in Arabia.

National recognition was accorded Fluor-o-Scope, the

Toni Colueci, Sara Eldridge (seated) and Carl Williatus check howling scores

16

o ION NATIONAL CONSTRUCTORS ASSOCIATION

PRcve.,ON AWARD

BEST YEN YEAR RECORDHEAVY ENVISION Yo

rnovi. 314 C1CIIIVT(Corporation 1Ctd.

INt FLUOR CORP., LTD. row EFrOrrte. rrIEOur,,, , DURING T.0 OCY-00[17 106, - SEPTE.10.04 30. .032

1.01 .10( ,,,,, ...... [0.7.1009 09 .9.090KA,

company's bi-monthly magazine, for excellence in com­position and content, and the 1952 Annual Report re­ceived a third place award in a national contest.

ARMED SERVICES

Although Korean hostilities have ceased, a number of employees continue to serve in all branches of the Armed Forces. Company records indicate that about 50 were called into service during 1953, with a total of 200 having reported for duty since the Korean outbreak.

COMPANY INFORMATION

While company news continues to be supplied to em­ployees by plant and office bulletin boards, special lit­erature and letters are mailed to all homes periodically. News items reporting on company developments and the activities of employees are prepared regularly for newspapers and trade journals.

RECREATION

Indicative of high company morale is the participa­tion by many employees in the athletic and recrea­tional programs conducted throughout the year. Com­pany teams won two softball championships, while in­dividual awards were received by employees in bowl­ing, tennis, basketball, and golf. Camera and bridge clubs meet regularly with members competing in va­rious contests and tournaments. Similar activities are also maintained at jobsites in Saudi Arabia under the supervision of a regular recreational director.

CREDIT UNION

Organization of a Credit Union during May added an­other employee-operated function that proved to be a most worthwhile and beneficial undertaking. Member­ship at the home plant totalled 625 as of October 31.

SAFETY PROGRAM

Safety honors received during 1953 included the Merit Award of the Associated General Contractors of Amer­ica, Inc., for accident prevention on the basis of the company's record during the past 10-year period, and the National Constructors Association Award for re­ducing its accident frequency by 20 per cent. Fluor's

17

FLUDAVERillou DID

1111 MHO tIllkakn '

Several of the safety awards received during 1953

Sgt. Ed Feierabend discusses employment status with Harry Moenik, personnel representative, following return from service

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ii...., 11

AGCA record was cited as third best in the nation, rep­resenting 57,930,418 man hours in the field on heavy construction with a frequency of 19.01 and a severity of 1.169. The national average for frequency was an­nounced as 25.33 with severity of 2.94. Job superin­tendents at East Alton, Ill., Lawrence, Kans., and Wood River, Ill., received special plaques for the outstanding accident prevention records on their respective jobs.

SERVICE PINS

Longevity of service and satisfactory performance of duty on the part of 112 company employees won them the company's highly prized service pin award. Pres­entations are made at special dinner parties held throughout the nation each year. This brings to 722 the total number of employees who have received pins designating from five to thirty years of service. The awards represent a composite total of 2765 years of service since the custom was started in 1941.

SUPERVISORS' CLUB

Organized in 1946, the Supervisors' Club has shown consistent growth and is recognized as a leading fac­tor in employee development. Bi-monthly programs stress Company operations and feature guest speakers, movies, and panel discussions. Membership totalled 396 during the year.

The Fluor Corporation, Ltd.

U.S. Sales and Service Offices

New York

Chicago Los Angeles

Houston San Francisco Tulsa Philadelphia Boston

Pittsburgh Birmingham Cincinnati Detroit

Foreign Offices

The Fluor Corporation of Canada, Ltd., Toronto Fluor Peruana, S.A., Lima, Peru Fluor International, S.A., Beirut, Lebanon FACTS-Fluor, Paris, France Head Wrightson Processes, Ltd., London, England

Alan't f acturing Plants

Paola, Kans. Los Angeles

Sub.sidiaries and Affiliates

The Fluor Corporation of Canada, Ltd. Middle-East Fluor, S.A. Fluor Maintenance, Inc. Fluor International, S.A. Middle-East, Inc. H. G. Acres & Company, Ltd. Fluor Peruana, S.A. Head Wrightson Processes, Ltd.

INTERNATIONAL SCOPE OF

ACTIVITIES DURING 1953

Fluor was active in many areas during the

year as shown in this world drawing

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United States Peril

Callada 7. England Virgin Islands 8. France Puerto Rico Lebanon

Colombia Arabia

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The Fluor Corporation, Ltd. Los Angeles 22, Calif.

for,