Jacobs Engineering Group Inc. (JEC - Free Report) , a construction services provider, received a contract from an industrial mineral supplier, Rio Tinto Minerals (RTM), a subsidiary of Rio Tinto Plc. (RIO). The contract value is estimated to be roughly $150 million.
Per the contract, Jacobs will be responsible for providing engineering, procurement and construction management services for RTM’s plant expansion project at Boron, California. The services will facilitate an increase in capacity and also ensure continued production of some chemicals till the end of the working life of the mine. The project is a result of the long-term relationship between the two companies.
This deal takes the total contracts count for Jacobs to six in the year 2013. The company in the last quarter earned some major contracts from the likes of Aura Minerals for copper mine expansion, NAVFAC Mid-Atlantic and Viru Keemia Grupp; among many others. These deals are vital for Jacobs, since more contracts bring in more revenue. However, the revenue that is generated varies in the quarter because it depends on the terms of completion of the deals.
Last week, Jacobs announced its earnings release for the quarter ended Dec 2012. The company reported a strong backlog for the quarter standing at $16.2 billion, which paves the way for a smooth progress ahead. However, the duration as well as the time of completion of this contract is not disclosed yet.
Jacobs is one of the world's largest and most diverse providers of technical, professional and construction services. The stock currently holds a Zacks Rank #2 (Buy). Its peers Willdan Group (WLDN - Free Report) and National Technical Systems Inc. also hold a Zacks Rank #2 (Buy).