Jacobs Engineering Group Inc. (JEC) has received a 2.5 year contract from LyondellBasell to provide engineering services in support of plant changes and small project works at two of its manufacturing sites in The Netherlands. Those manufacturing sites include advanced polyolefins plants at Botlek and Maasvlakte. However, the management did not disclose the contract value.
Headquartered in Rotterdam, The Netherlands, LyondellBasell is the largest producer and marketer of polypropylene and polyethylene in the region, with production sites in six countries throughout Western and Eastern Europe.
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 Ltd. (FWLT) and Fluor Corp. (FLR).
Jacobs is planning to expand and consolidate in India and China , respectively and wishes to expand in the Middle East . Jacobs’ diversification in terms of markets, geography and services will continue to facilitate future growth.
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.
Last month Jacobs reported expected 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 construction services, which was hit by project cancellations.
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.
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