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Contract Galore For JEC - Analyst Blog

Jacobs Engineering Group Inc. ( JEC ) recently announced winning of a series of contracts.

The company's Chemetics unit in Pickering, Ontario, Canada was awarded a design and fabrication contract by Aurubis Bulgaria AD. The contract involves installation of two proprietary designed sulfuric acid coolers in the acid plant in Pirdop, Bulgaria. The range of operations entails the design and fabrication of drying and interpass anodically protected sulfuric acid coolers.

The contract has been awarded to Jacobs by Aurubis, a leading integrated copper group and the world's largest copper recycler. Jacobs' Chemetics unit had a long and successful work relationship with the Pirdop facility since 1998 for projects starting from acid coolers to Electrolyte Heaters.

Jacobs' recent contract from the U.S. Army Corps of Engineers Baltimore District for architect-engineering services in support of multi-disciplined construction projects along with alterations and renovations deserves special mention. This contract will not only deliver facilities in support of the Army missions, but will also revive and perpetuate the long history of supporting the Baltimore District. The contract is valued at the firm-fixed-price of $12 million.

In a separate announcement, Jacobs proclaimed winning of a contract from Honeywell to provide engineering services for the expansion of its Baton Rouge, La. manufacturing facility. Jacobs will be executing the project work from its offices in Mt. Laurel, N.J.

The Baton Rouge facility, one of the leading refrigerants suppliers in the U.S., will now be supported by Jacobs to produce Honeywell's new low-global-warming-potential (GWP) blowing agent and propellant (technical name: HFO-1234ze) on a commercial scale. Production of HFO-1234ze is scheduled to begin in late 2013.

The project involves Jacobs being part of a cutting edge next-generation technology targeted to improve the energy efficiency for a multitude of applications.

Jacobs' worldwide ever-increasing presence is thus a splendid indication of its strong growth trajectory in the infrastructure market across the globe. This has also been winning investor confidence over time and is expected to continue with such an outlook in future. The company directly competes with its peers, viz. Fluor Corporation ( FLR ) and Foster Wheeler AG ( FWLT ).

We currently hold a Neutral recommendation on the stock. Jacobs has a Zacks #2 Rank, implying a short-term (1-3 months) Buy 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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