JEC High on Contracts Galore - Analyst Blog
February 15 2012 - 11:52AM
Zacks
Recently, Jacobs Engineering Group Inc. (JEC)
received four contracts from Arkema to Support PVC Projects in
China and announced receipt of another contract from Marine Corps
Logistics Command for Distribution Management Center Support.
Arkema Contracts
Jacobs will be executing four contracts from Arkema France for
basic engineering services to support the provision of Arkema's
proprietary suspension and emulsion technology to four of its
clients in China. Value of the contracts has not been disclosed
yet.
Ever since 2008, Jacobs and Arkema have collaborated worldwide
on projects for which Arkema has licensed its PVC technology. The
new contracts are anticipated to strengthen Jacobs' presence in
China; supported by Arkema’s special technical capabilities in the
competitive global chemical industry.
MCLC Support Program
Jacobs also announced that it has been selected to provide
technical and operations support for the Marine Corps Logistics
Command (MCLC) Distribution Management Center (DMC).
According to the contract, Jacobs will be providing support for
DMC program advocacy, oversight and coordination as well as
off-site assistance for Distribution Support Team operations within
continental U.S. Such support at DMC operating locations overseas
is anticipated to ensure end-to-end asset management, equipment
readiness and service to war fighters.
The contract has one base year and one option year with a
potential value of $20.2 million through January 2014.
About Arkema
Arkema's technology is currently used in four new polyvinyl
chloride (PVC) production plants in Hefei, Golmud, Etuoke Banner
and Wu Lan Cha Bu, People's Republic of China. The basic
engineering work is being jointly performed by Jacobs' PVC
technology experts in its office in Leiden, The Netherlands, and
Arkema's PVC technology team based in Lyon, France.
About MCLC
MCLC supports Marine Corps operating forces by providing
logistics solutions and support for fielded weapon systems, support
services and supplies worldwide. The Distribution Management Center
of MLCL is responsible for movement, storage, maintenance, forward
in-stores and ground equipment staging operations for the major
equipment of Marine Corps. The recent contract is expected to
strengthen Jacobs’ longstanding relationship with the Marine Corps
and Marine Corps Logistics Command
About Jacobs
Jacobs Engineering Group, one of the world's largest and most
diverse providers of technical, professional, and construction
services, serves a variety of industrial, commercial and government
clients across a global network.
Jacobs presently has significant share in the huge global
infrastructure market. The company’s continuous inflow of
contracts, growing international exposure and diversification
across markets, geographies and services has been providing a
competitive edge over its peers such as, Fluor
Corporation (FLR) and Foster Wheeler AG
(FWLT).
We currently hold a Neutral recommendation on the stock. Jacobs
has a Zacks #3 Rank, implying a short-term (1-3 months) Hold
rating.
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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