Jacobs Wins Engineering Contract - Analyst Blog
May 31 2011 - 5:00AM
Zacks
Jacobs Engineering Group
Inc. (JEC) entered into a five-year master services
agreement (MSA) with Infineum, a leading manufacturer and seller of
petroleum additives, for operations in Europe, Asia and North
America. The value of the contract was not disclosed.
As per the agreement, Infineum’s
manufacturing facilities in the U.S., France, Germany, U.K., Italy
and Singapore is receiving Jacob’s engineering services. Services
from Jacobs will aid Infineum's project development at its
manufacturing locations.
California-based Jacobs Engineering
is one of the leading providers of professional, technical and
construction services to industrial, commercial and governmental
clients. The company provides its services through offices and
subsidiaries located principally in North America, Europe, Asia and
Australia.
The company offers services in four
areas: Construction Services, Project Services, Operations and
Management, and Process, Scientific and Systems consulting.
We believe Jacobs’ diversification
across markets, geographies and services with a number of new
contracts will help it to generate growth in future. Jacobs’
diversification across markets, geographies and services will also
help it to generate growth in a sluggish environment. The
diversified business of the company will help it to expand in
future through new contracts. The company also plans to expand into
the emerging markets like India, China and the Middle East, which
are expected to perform much better than the developed markets in
the coming years.
However, the company faces immense
risk as it operates in a highly competitive market. Major
competitors of Jacob’s are Fluor
Corporation (FLR) and Foster Wheeler
AG (FWLT). We currently maintain our Neutral
recommendation on Jacobs Engineering Group, with a Zacks #3 Rank
(Hold recommendation) over the next one-to-three months.
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
FOSTER WHELR AG (FWLT): Free Stock Analysis Report
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
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