Quarter Results Are Mixed; Shaw Selling One of Its Unit

Publicly traded contractors reported mixed news in quarterly results released late last month. The Shaw Group Inc. reported on Oct. 31 “a very challenging” fourth quarter, ended on Aug. 31. The firm noted cost hikes on two unidentified projects and an “unfavorable settlement” on another that generated a 44¢-per-share loss. Shaw also said it was lowering its earnings estimates for 2012 and was weighing sale offers for its energy-and- chemicals group. Credit Suisse construction sector analyst Jamie Cooke said on Oct. 31 that the firm's stock “rallied over 4%” on news of the unit's sale as well as a stock repurchase plan. EMCOR Group's third-quarter results, announced on Oct. 26, surprised analysts with backlog up in private-sector work. “[The firm's] organic revenue growth surprisingly reached almost double-digit levels, reflecting a rebound in commercial and industrial work as well as ongoing strength in institutional jobs,” said Richard Paget, director of industrials and infrastructure for WJB Capital Group. Avram Fisher, sector analyst for BMO Capital Markets, said that Chicago Bridge & Iron's $1.3 billion in third-quarter revenue, announced on Oct. 26, was “better than expected,” but noted that its lower-than-expected quarterly margin “was driven by project bidding costs and should rebound slightly.”

Companies

Jacobs Acquires KlingStubbins

On Nov. 1, Jacobs Engineering Group announced it has acquired architect KlingStubbins, a move that boosts the parent's design capabilities and adds 500 U.S.- and Asia-based employees. Kling-Stubbins, Philadelphia, ranks at No. 111 on ENR's Top 500 Design Firms list, with $98 million in 2010 revenue.