Jacobs Engineering Group Inc.
), a construction services provider, received a contract from an
industrial mineral supplier, Rio Tinto Minerals (RTM), a
Rio Tinto Plc.
). The contract value is estimated to be roughly $150
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
National Technical Systems Inc.
) also hold a Zacks Rank #2 (Buy).
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