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Released May 16, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) giant Jacobs Engineering Incorporated (NYSE:JEC) (Dallas, Texas) has beefed up its backlog with significant additions to its Aerospace & Technology and Building & Infrastructure businesses, which has helped to offset the effects of slowing progress on its energy-related work, particularly in the Oil & Gas and Chemical Processing industries. Industrial Info is tracking nearly $100 billion in active projects involving Jacobs.
Jacobs' backlog in its second fiscal quarter of 2017 increased to $18.5 billion, up $247 million from the same period last year; the professional services component reported $12.4 billion, its highest in two years.
"The significant increase in sales bookings year-to-date, and the continuing strength of our new business pipeline [and] our Aerospace & Technology line of business, are well-positioned to both grow top-line revenue and drive sequential quarterly profit improvement in the second half of this fiscal year," said Steven Demetriou, the chief executive officer of Jacobs, in an earnings conference call last week.
Among the projects under construction are Sound Transit's (Seattle, Washington) $2.1 billion Northgate Link light rail extension in Seattle, Washington, which is expected to extend Seattle's light-rail system more than four miles north from the University of Washington to the urban village of Northgate. The project, which is ahead of schedule, includes Northstar (Bellvue, Washington), a joint venture between Jacobs and CH2M Hill (Denver, Colorado), as construction manager. For more information, see Industrial Info's project report.
Other transportation projects to make progress during the quarter were the $131 million streetcar system in Oklahoma City, Oklahoma, which began construction in February, and $184 million of storage facility and other improvements at County Yard in New Jersey, which recently entered the engineering phase. Both projects are set to be completed in 2018. For more information, see Industrial Info's reports on the Oklahoma and New Jersey projects.
Nonetheless, the company's earnings were in a weaker position, with executives citing its oil and gas exposure and backlogged chemical projects, as well as large field-related activities that are taking longer than expected to reach their procurement and construction phases. But Jacobs did sign onto a major project in the Chemical Processing Industry: Total S.A.'s (NYSE:TOT) (Paris, France) unit addition at its Bayport Polyethylene Resins facility in Pasadena, Texas, for which Jacobs is set to perform design-engineering and FEED studies. As currently envisioned, the unit would produce 1.35 billion pounds per year of polyethylene. For more information, see Industrial Info's project report.
Two chemicals projects to have reached construction are Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) $750 million unit addition at its facility in Geismar, Louisiana, which is currently expected to be completed in the summer of 2018, and Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) $1.1 billion polyethylene unit addition in Beaumont, Texas, which is expected to wrap up in early 2019. Jacobs is providing EPC services for both units; the Geismar unit has an estimated capacity of 930 million pounds per year of alpha-olefins, while the Beaumont unit will include a polymerization line and a finishing line to produce more than 1.4 billion pounds of low-density polyethylene (LDPE) per year. For more information, see Industrial Info's project reports on the Geismar and Beaumont units.
Jacobs' own capital spending totaled $24.7 million during its fiscal second quarter, compared with $13.3 million in second-quarter 2016; for the first six months of the year, capital spending totaled $45.7 million, compared with $29.3 million in the first half of fiscal 2016.
Jacobs reported net earnings of $50 million for second-quarter 2017, a 34% decrease from the same period last year; revenues stood at $2.3 billion, an 18% decrease. In addition to the oil and gas factors, much of the earnings decline was blamed on restructuring and other charges associated with Jacobs' strategic review of its European and Middle Eastern operations, which accounted for about $45 million in after-tax costs.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Jacobs' backlog in its second fiscal quarter of 2017 increased to $18.5 billion, up $247 million from the same period last year; the professional services component reported $12.4 billion, its highest in two years.
"The significant increase in sales bookings year-to-date, and the continuing strength of our new business pipeline [and] our Aerospace & Technology line of business, are well-positioned to both grow top-line revenue and drive sequential quarterly profit improvement in the second half of this fiscal year," said Steven Demetriou, the chief executive officer of Jacobs, in an earnings conference call last week.
Among the projects under construction are Sound Transit's (Seattle, Washington) $2.1 billion Northgate Link light rail extension in Seattle, Washington, which is expected to extend Seattle's light-rail system more than four miles north from the University of Washington to the urban village of Northgate. The project, which is ahead of schedule, includes Northstar (Bellvue, Washington), a joint venture between Jacobs and CH2M Hill (Denver, Colorado), as construction manager. For more information, see Industrial Info's project report.
Other transportation projects to make progress during the quarter were the $131 million streetcar system in Oklahoma City, Oklahoma, which began construction in February, and $184 million of storage facility and other improvements at County Yard in New Jersey, which recently entered the engineering phase. Both projects are set to be completed in 2018. For more information, see Industrial Info's reports on the Oklahoma and New Jersey projects.
Nonetheless, the company's earnings were in a weaker position, with executives citing its oil and gas exposure and backlogged chemical projects, as well as large field-related activities that are taking longer than expected to reach their procurement and construction phases. But Jacobs did sign onto a major project in the Chemical Processing Industry: Total S.A.'s (NYSE:TOT) (Paris, France) unit addition at its Bayport Polyethylene Resins facility in Pasadena, Texas, for which Jacobs is set to perform design-engineering and FEED studies. As currently envisioned, the unit would produce 1.35 billion pounds per year of polyethylene. For more information, see Industrial Info's project report.
Two chemicals projects to have reached construction are Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) $750 million unit addition at its facility in Geismar, Louisiana, which is currently expected to be completed in the summer of 2018, and Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) $1.1 billion polyethylene unit addition in Beaumont, Texas, which is expected to wrap up in early 2019. Jacobs is providing EPC services for both units; the Geismar unit has an estimated capacity of 930 million pounds per year of alpha-olefins, while the Beaumont unit will include a polymerization line and a finishing line to produce more than 1.4 billion pounds of low-density polyethylene (LDPE) per year. For more information, see Industrial Info's project reports on the Geismar and Beaumont units.
Jacobs' own capital spending totaled $24.7 million during its fiscal second quarter, compared with $13.3 million in second-quarter 2016; for the first six months of the year, capital spending totaled $45.7 million, compared with $29.3 million in the first half of fiscal 2016.
Jacobs reported net earnings of $50 million for second-quarter 2017, a 34% decrease from the same period last year; revenues stood at $2.3 billion, an 18% decrease. In addition to the oil and gas factors, much of the earnings decline was blamed on restructuring and other charges associated with Jacobs' strategic review of its European and Middle Eastern operations, which accounted for about $45 million in after-tax costs.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
