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Jacobs Expands in United Kingdom

Zacks Equity Research

Jacobs Engineering Group Inc. (JEC) recently inked a contract with Transport for London, for providing maintenance and improvement of services in North East London, United Kingdom. The value of the contract remains undisclosed. The project will span over eight years, starting from Apr 1, 2013.

Jacobs will not be solely responsible for the execution of this project as the privately held Eurovia Group will act as a joint partner. The scope of this project covers the road network in seven boroughs in the region, which are maintained by the Transport for London team.

Jacobs will take up the responsibility of lead professional planner and designer whereas the combined entity will take charge of highway construction, maintenance and design services.

Also, last week, Jacobs received another contract. This contract is from BASF Antwerp N.V., a wing of BASF SE (BASFY), for providing engineering services at BASF’s integrated chemicals complex in Antwerp, Belgium.

The contract value of this deal is also undisclosed while the duration of the contract is estimated to be three years. BASF is a diversified portfolio company, with its products ranging from chemicals, plastics, performance products and crop protection products to oil and gas.

Jacobs’ continued association with the company is assumed to be a result of its efficient project execution. We expect Jacobs’ proficiency in handling projects will be amply reflected in its performance and help the company sustain its long standing relationship with BASF in the future.

Jacobs is scheduled to report its fiscal second quarter 2013 earnings after the close of market on Apr 29. The Zacks Consensus Estimate stands at 83 cents, indicating a year-over-year growth rate of 26.9%. 

Jacobs currently carries a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are Fluor Corporation (FLR) and Engility Holdings, Inc. (EGL), both carrying a Zacks Rank #1 (Strong Buy).

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Read the Full Research Report on BASFY

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