Engineering and construction firm Fluor Corporation FLR continued its spree of impressive contract wins as it revealed that its team, Purple Line Transit Partners, has won the design-build, finance, operate and maintain award from Maryland Department of Transportation and the Maryland Transit Administration for the Purple Line project.
The team consists of Fluor Enterprises Inc., Star America Purple Line, LLC and Meridiam Infrastructure Purple Line, LLC.The Purple Line Transit Constructors team (comprised of Fluor Enterprises, The Lane Construction Corporation, Traylor Bros., and Atkins North America) will commence design and construction of the project later this year.
Passenger service for the line is slated for early 2022.
Subsequent to the construction, Purple Line Transit Operators, a Fluor-led team will provide operations and maintenance services for 30 years. Fluor intends to book its share of the contract value sometime this year.
The $2 billion Purple Line Light Rail Project is located in the Washington Metropolitan Region. It will provide services stretching across 21 stations along a 16-mile alignment through Montgomery and Prince George’s counties. The line will connect numerous existing transit providers, thus enabling better mobility and connectivity to major economic and job centers.
Earlier this week, Fluor won the design-build and maintain project award from Arizona Department of Transportation for the Loop 202 South Mountain Freeway project, through its joint venture, Connect 202 Partners.
These wins reflect Fluor’s solid track record and are one of the key growth drivers for the company. However, weaker commodity prices are a major hindrance for Fluor’s customers, by directly affecting funding for new projects. Even the company’s non-oil and gas end markets are feeling some pressure due to these macroeconomic concerns. Flour is also grappling with weakness in the mining and metals business, softness in key geographies and a strained global economic growth outlook.
Flour presently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the broader sector include Sonus Networks, Inc. SONS, Ubiquiti Networks, Inc. UBNT and Mitel Networks Corporation MITL, each sporting a Zacks Rank #2 (Buy).
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