Weekly Wreck

Fluor Corporation - soon to be the first casualty of the trade war?

With the newly imposed tariffs on steel and aluminum imports into the US and the resulting price increases and trade disruptions, it’s hard to guess which company will feel the worst effects first. One likely candidate is construction and engineering giant Fluor Corporation [FLR]. With a one-two punch of higher project costs and companies shying away from new projects due to possible trade disruptions, it’s easy to imagine this company may have seen better days.

With what we believe to be a rather stale Board investors can only hope that the firm’s management is able to find the energy and imagination to deal with the new economic reality that landed at their feet at the beginning of March.

If not we can only hope that a trade war is averted and the company’s Board gets a few fresh faces.