Engineering and construction company, Jacobs Engineering Group Inc. (JEC - Free Report) received a contract from Bayer CropScience Australia, the agricultural wing of the Bayer Group. The contract involves the early stage engineering at Bayer’s expansion project at the formulation plant, situated at Kwinana, Western Australia. The financial terms of the contract were not revealed.
The expansion of the plant includes the installation of a new bulk unloading and mixing system. Jacobs will be responsible for updating as-built site documentation and the cost estimates for the new build. Once the costs are estimated and the documents updated, the project will move to engineering procurement and construction management phases.
Based in California, Jacobs is one of the leading providers of professional, technical, and construction services to industrial, commercial, and governmental clients. The company provides its services through more than 200 offices and subsidiaries located principally in North America, Europe, Asia, and Australia.
Jacobs mostly earns its businesses through repeat customers along with adding new ones. Roughly 94% of the businesses earned in fiscal second quarter of 2013 were through repeat clients, signifying the high satisfaction rate.
Jacobs has expansion plans in Australia, with the segment contributing roughly 2% to the total revenue in fiscal 2012. We expect the company to attain success given the huge flow of contracts. In Mar 2013, Jacobs was selected as one of the panel members by Australian gas producer, Santos. During the same month, Jacobs also received a contract from Shell Company of Australia Ltd., for Shell’s Clyde Terminal Project, based in Sydney, Australia.
Jacobs has overseas operation, making it prone to various socio- political risks as well as currency fluctuations. Jacobs currently carries a Zacks Rank #4 (Sell). Other stocks performing well in the sector include Michael Baker Corporation , Foster Wheeler AG and Pernix Group Inc , each carrying a Zacks Rank #2 (Buy).