Sale of industrial giant Stork delayed, mega loss again

This is evident from the latest annual report of the American construction giant Fluor Corporation. The Americans bought Stork Technical Services at the end of 2015 for 695 million dollars, or 642 million euros.

expensive failure

At the time, Fluor had big plans for the new acquisition, but the acquisition turned out to be a costly failure. The expected synergy between the design, construction and maintenance sectors failed to materialize and turnover fell. As a result, Fluor had to wipe out Stork to hundreds of millions.

At the beginning of last year, the Americans announced that they wanted to sell Stork again. It still hasn’t happened. In its annual report released in early March, Fluor wrote that “the sale is expected to close in early 2022.”

delayed sales

However, as of mid-April, the sale has not yet ended. Fluor spokesman Brian Mershon said he could not explain the delay, as the company reported quarterly earnings on May 6 as it was in its so-called “quiet period.” “We will then provide the most up-to-date information on Fluor, including Stork.”

Stork’s Utrecht headquarters did not respond to repeated e-mail requests for clarification. The communication department and manager Taco de Haan cannot be reached by telephone.

Income recovery

Fluor’s annual report also shows that Stork was unable to convince last year.

Admittedly, the business unit’s revenue increased slightly, up 6.5% to approximately $1.6 billion. Gross margin also increased from a negative $5 million in 2020 to $40 million in 2021.

Another mega loss

But mainly due to new one-off charge-offs, reissue costs and other exit costs, Stork was again heavily in the red at the end of the line. The mega loss, which still amounted to 166 million dollars in 2021, has been converted to 153 million euros.

The prior year net loss was $211 million, or €195 million. Stork employs approximately 17,000 people worldwide, of which 3,000 in the Netherlands.

Source: RTL