Jacobs Engineering Group Inc. ( JEC ) recently received the Facility of the Year Award ("FOYA") for successfully delivering the NSI Capacity Expansion project to the pharmaceutical giant Pfizer Inc.'s ( PFE ).
NSI Expansion Project
Pfizer's NSI Capacity Expansion project supports expansion and innovation of the biotechnology and pharmaceutical manufacturing facility of the company. Being an efficient engineer, Jacobs ensures a hazardless flow of the project's operational and designing processes with specialized lean-based strategies. The efficacy of the same was also secured with a 5S program and Six Sigma solutions.
FOYA is sponsored by the International Society for Pharmaceutical Engineering ("ISPE"). The decision-making personnel of the award committee were impressed with the start-up, construction, demolition and integration activities of the NSI Capacity Expansion scheme.
Jacobs Growth Path
Success of Pfizer's NSI project proves Jacobs' capability for a resourceful project delivery. The company had previously won FOYA awards for three years in a row for certain other projects as well. The company has equipped many global pharmaceutical firms with innovative yet cheaper business solutions.
Few days back, Jacobs received a contract for providing specialized ecological services to sustain the monitoring and technical responsibilities of the U.K. Environment Agency. The company had also strengthened its relationship with Malaysian Resources Corp Berhad by successfully conveying its services for construction of a new highway in Malaysia. Also, Jacobs secured the position of chief engineer for building a new power plant in Philippines.
Such new business contracts are expected to improve Jacobs' credibility in the market. However, positive outcomes from these contracts can be offset by currency or exchange rate volatilities in the future.
Expenses related to Jacobs' organic growth plans have probably escalated its debt burden for fiscal 2014. Furthermore, direct cost of contracts and significant year over year operating expenses have dampened the company's earnings in the last reported fiscal year. Nevertheless, Jacobs has decided to strengthen its financial position in fiscal 2015 by undertaking cost-reduction initiatives.
With a market capitalization of $5.25 billion, Jacobs currently holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include AECOM Technology Corp. ( ACM ) and Willdan Group, Inc. ( WLDN ). Both currently sports a Zacks Rank #1 (Strong Buy).
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