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Three Contract Wins for Jacobs

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Engineering and construction company, Jacobs Engineering Group Inc. (JEC) recently added three more contracts to its existing potent pipeline. The first contract came from the European polyolefins, base chemicals and fertilizers giant, Borealis. The contract value was kept under wraps.

Per the contract, Jacobs will be providing procurement, engineering, construction management and project management services to Borealis’ polyethylene production capacity in Stenungsund, Sweden. Jacobs will be required to install new silos and convert film silos along with installing new conveyor systems.

The second contract was awarded by Nesma & Partners to provide program management services for its Saudi Arabian National Guard Hospital Program.  The contract has tenure of three years including option periods. However, the contract value was not disclosed.

The contract involves helping Nesma & Partners build five hospitals over four sites in Saudi Arabia. This includes building two 300-bed National Guard hospitals in Qassim and Taif, one 346-bed children’s hospital and one 176-bed neurological hospital on an existing hospital site in Jeddah, and also a 300-bed maternity hospital in Riyadh. Jacobs intends to utilize its expertise in building and managing healthcare facilities in fulfilling this contract.

The final project was announced by The Boeing Co. (BA) to provide project management and construction management services. The project deals with Boeing’s new fabrication facility in Everett, Washington. Roughly 2,000 construction professionals will be employed to provide project management, construction management, preliminary planning support and project controls. The project is expected to span from late 2014 to mid 2016.

With a market capitalization of $7.5 billion, Jacobs currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Pernix Group Inc (PRXG) and Willdan Group, Inc. (WLDN). While Pernix Group sports a Zacks Rank #1 (Strong Buy), Willdan Group holds a Zacks Rank #2 (Buy).

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