Jacobs Engineering Group on Tuesday reported rrevenue of $4.1 billion for the quarter ended Sept. 30, up significantly from the $2.7 billion reported a year earlier.
Net earnings, however, showed a $23 million loss (-$0.16 per share) in the latest quarter compared to a $94 million or $0.78 per share, in net earnings for quarter ended Sept. 30, 2017. The earnings were affected by tax reform and the costs associated with integration of CH2M Hill, which Dallas-based Jacobs purchased in December 2017.
The quarter marked the end of Jacobs’ fiscal year.
In their earnings call Tuesday morning, Jacobs executives noted the company is selling its Energy, Chemical, and Resources (ECR) business to WorleyParsons. The $3.3 billion deal, announced last month, should close during the first half of 2019.
The sale should allow Jacobs to concentrate more on more stable segments such as the Aerospace, Technology, Environmental, and Nuclear (ATEN) unit, which houses the company’s Energy Department, Department of Defense, and NASA businesses, among others. Operating profit for ATEN was $95 million for the quarter, up year over year from net profit of about $56 million.
“This was an exciting year at Jacobs. We accelerated our profitable growth strategy with the acquisition of CH2M and continued to transform the portfolio with the announced sale of our ECR business, all while delivering strong financial results across each segment,” Jacobs President and CEO Steven Demetriou said during the call.
“The teams are now fully integrated,” the CEO added of Jacobs and CH2M.
CH2M leads a team with a $542 million contract extending until March 2020 for cleanup of the West Valley Demonstration Project in New York. In addition, the Energy Department in September awarded a CH2M affiliate a 12-month extension of its Central Plateau Cleanup contract at the Hanford Site in Washington state. Jacobs has indicated the company will seek to retain the original $5.8 billion Central Plateau contract, which began in 2008.
In Kentucky, Jacobs leads a team with a $1.5 billion contract for deactivation and remediation at the Paducah Site. If all option periods are exercised it could run into mid-2027.
