Jacobs Engineering Group Inc. (JEC) received a contract from the Air Force Research Laboratory’s Airbase Technologies Division to research and develop technologies for deployed airbase infrastructure, force protection and homeland defense operations. The potential value of the 3-year contract is estimated at $9.9 million.
Jacobs will provide technical expertise to execute a comprehensive research and development program that includes the design, development and testing of new protective structural systems and components. The new technologies aim to improve the physical protection of personnel from conventional and improvised explosive devices.
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) and Fluor Corp. (FLR).
Jacobs is planning to expand and consolidate in India, China and the Middle East. Jacobs’ diversification in terms of markets, geography and services will continue to facilitate future growth. Recently, 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 decline 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 set by clients. Moreover, Jacobs’ ongoing acquisition strategy will help strengthen its position in future.
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