Jacobs Wins $38.7M Contract

Recently, Jacobs Engineering Group Inc. (JEC: 39.40 0.00 0.00%) was awarded a contract by the Space and Naval Warfare Systems Command (SPAWAR) headquarters in San Diego, CA.
 
SPAWAR designs, develops and deploys advanced communications and information capabilities, and provides much of the tactical and non-tactical information management technology required by the Navy to complete its operational missions. The contract, awarded under the Naval Sea System’s Command Seaport-e contract vehicle, has an estimated at $38.7 million and runs through August 2014. 

Jacobs will provide technical and logistics support services to cover the Navy Marine Corps Intranet (NMCI) life cycle, including customer relations, end user requirements, implementation support of NMCI solutions, and life cycle planning requirements for transition of NMCI to Next Generation Enterprise Network (NGEN) for its Program Managers. These support services will address NMCI and NGEN requirements for the remainder of the NMCI contract and during the NMCI Continuity of Services Contract (COSC). 

With annual revenues exceeding $11 billion, Jacobs is one of the world’s largest and most diverse providers of technical, professional and construction services. Its major competitors are Foster Wheeler AG (FWLT: 26.50 0.00 0.00%) and Fluor Corp. (FLR: 45.05 0.00 0.00%). 

Jacobs is planning to expand and consolidate in India and China, respectively and also wishes to expand in the Middle East. Jacobs’ diversification in terms of markets, geography and services will continue to facilitate future growth. Last month Jacobs reported in-line results for the first quarter of fiscal 2010. 

Net earnings were $72.4 million, or 58 cents per share compared to $116.4 million or 94 cents during the same period in fiscal 2009. The EPS matched the Zacks Consensus Estimate. The fall in earnings was attributable to project cancellations in its construction services division. 

Revenues of $2,477.8 million for the quarter were well below revenues of $3,232.7 million in the first quarter of fiscal 2009. The fall in revenues stemmed from difficult economic conditions. Looking ahead, management has reiterated its full-year 2010 guidance and expects earnings per share in the range of $2.00 to $2.60. 

Jacobs’ cost-control initiatives help to deliver superior technical, professional and construction services safely, efficiently and within the cost and time parameters of clients. Moreover, Jacobs’ ongoing acquisition strategy will help to strengthen its position in future.