Jacobs Engineering Takes Steps To Boost Bottom Line in 2017
Jacobs Engineering Inc., now Dallas-based, reported earnings and revenue for its full year and fourth quarter, both ended Sept. 30; executives are optimistic that a company restructuring into four business lines and cost cutting will improve the bottom line next year. In year-end results released on Nov. 22, Jacobs reported adjusted net earnings of $374 million on revenue of $11 billion for its fiscal 2016. This amount compares to adjusted net earnings of $411 million on $12.1 billion in revenue for the prior year. The firm noted weakness in its oil-and-gas and refining sectors but saw strength in petrochemicals work, noting Saudi market diversification into that market and the firm’s own transition from front-end design toward more EPC work. Jacobs said backlog totaled $18.8 billion for 2016. The firm’s share price had jumped as high as 12% in post-election U.S. trading, with analysts speculating growth from the Trump administration’s touted U.S. infrastructure push. Jacobs also won several recent road and rail contracts in Australia. “We believe our more efficient cost structure will result in increased profitability” next year, said Steve Demetriou, Jacobs chairman and CEO.