Jacobs Wins Another Contract - Analyst Blog
January 30 2013 - 8:10AM
Zacks
Jacobs Engineering Group
Inc. (JEC), a construction services provider, received a
contract from an industrial mineral supplier, Rio Tinto Minerals
(RTM), a subsidiary of Rio Tinto Plc. (RIO). The
contract value is estimated to be roughly $150 million.
Per the contract, Jacobs will be
responsible for providing engineering, procurement and construction
management services for RTM’s plant expansion project at Boron,
California. The services will facilitate an increase in capacity
and also ensure continued production of some chemicals till the end
of the working life of the mine. The project is a result of the
long-term relationship between the two companies.
This deal takes the total contracts
count for Jacobs to six in the year 2013. The company in the last
quarter earned some major contracts from the likes of Aura Minerals
for copper mine expansion, NAVFAC Mid-Atlantic and Viru Keemia
Grupp; among many others. These deals are vital for Jacobs, since
more contracts bring in more revenue. However, the revenue that is
generated varies in the quarter because it depends on the terms of
completion of the deals.
Last week, Jacobs announced its
earnings release for the quarter ended Dec 2012. The company
reported a strong backlog for the quarter standing at $16.2
billion, which paves the way for a smooth progress ahead. However,
the duration as well as the time of completion of this contract is
not disclosed yet.
Jacobs is one of the world's
largest and most diverse providers of technical, professional and
construction services. The stock currently holds a Zacks Rank #2
(Buy). Its peers Willdan Group (WLDN) and
National Technical Systems Inc. (NTSC) also hold a
Zacks Rank #2 (Buy).
JACOBS ENGIN GR (JEC): Free Stock Analysis Report
(NTSC): ETF Research Reports
(WLDN): ETF Research Reports
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