Jacobs Wins Two Contracts
Engineering and construction company, Jacobs Engineering Group Inc. (JEC), recently won a contract from CMPC Group’s Celulose Riograndense Ltda. Per the contract, Jacobs will design and supply an integrated chlorine dioxide plant to CMPC’s pulp expansion project in Guaiba, Río Grande do Sul, Brazil. The financial details of the contract were not disclosed.
Once complete, the plant is expected to produce roughly 60 tons (equivalent to 55 metric tonnes) of chlorine dioxide per day. Jacobs will be engaged in designing, engineering as well as supplying the main equipment and materials for the plant. For the purpose, Jacobs will provide its proprietary Chemetics equipment.
Based in Chile, the CMPC Group is involved in the production and sales of pulp, paper and other forest products. This is Jacobs’ first integrated chlorine dioxide plantcontract within South America.
On the same day, Jacobs’ joint venture with Architects Hawaii Ltd. received a contract from the Naval Facilities Engineering Command (:NAVFAC) Pacific, to provide architecture-engineering services. The one-year contract is estimated to be worth $10.0 million. The contract, however, has four one-year option periods.
Under the contract, the joint venture will provide design, engineering, specification writing, cost estimating and related services for NAVFAC Pacific projects at various locations.
The continuous contracts flow for Jacobs strengthens our belief in the company’s future prospects. Jacobs had a backlog of $17.2 billion as on Jun 28, 2013, increasing 10.2% year over year.
Jacobs currently carries a Zacks Rank #3 (Hold). Other stocks worth a watch in the engineering sector are Michael Baker Corporation (BKR), VSE Corp. (VSEC) and Hovnanian Enterprises Inc. (HOV). While Michael Baker carries a Zacks Rank #1 (Strong Buy), VSE Corp. and Hovnanian Enterprises carry a Zacks Rank #2 (Buy).
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