Jacobs Engineering Group Inc. has announced its financial results for the 1Q16 ending 1 January 2016.1Q16 highlights:
- US GAAP net earnings and EPS of US$47 million and US$0.38, respectively.
- Adjusted net earnings of US$95 million.
- Adjusted EPS of US$0.78.
- Backlog at January 1, 2016 of US$18.2 billion.
- 2015 Restructuring (focused on cost effectiveness) - delivering strong results - now targeting annual savings of US$180 - 200 million.
- 1.0 million shares of common stock repurchased during the first quarter of fiscal 2016 for US$42 million.
Jacobs reported today adjusted net earnings of US$95 million, or US$0.78 per diluted share, on revenues of US$2.8 billion for its 1Q16 ending 1 January 2016 (US GAAP net earnings and EPS were US$47 million and US$0.38, respectively). This compares to net earnings of US$100 million, or US$0.77 per diluted share, on revenues of US$3.2 billion for the 1Q15 ending 26 December 2014. Included in the company's first quarter adjusted net earnings is a US$11 million, or US$0.09 per share, tax benefit related to an international tax matter.
The company's adjusted net earnings for the 1Q16 exclude the after-tax costs related to certain restructuring activities that began during the fiscal year of 2015 (the ‘2015 restructuring’) totalling US$48 million, or US$0.40 per diluted share.
Jacobs also announced a total backlog of US$18.2 billion at 1 January 2016, including a technical professional services component of US$11.4 billion.
Commenting on the results for the 1Q16, Jacobs President and CEO Steve Demetriou said, “Despite strong headwinds in certain sectors and a challenging macro-economic environment, we delivered results aligned with our expectations. This performance was due to our diverse portfolio of customers, geographic footprint and improvements in project delivery execution. Our performance was also supported by our efforts to realign our business and streamline operations, which continues to benefit the company and right-sizes it in light of current economic conditions."
Commenting on the company’s reorganisation and its earnings outlook, Jacobs Chief Financial Officer Kevin Berryman stated, “The company remains on track to implement revised segment reporting for our second quarter results, given that the company has begun managing its operations during the second quarter along the previously announced four lines of business: petroleum and chemicals, building and infrastructure, aerospace and technology, and industrial. Regarding the outlook, although the company met expectations in the quarter, continuing challenges in certain end markets require us to remain cautious as to our near-term outlook. Considering the benefits we're realising from our recent restructuring activities, we are confirming our fiscal 2016 adjusted EPS range of US$2.80 to US$3.30, including the discrete international tax item."
Adapted from press release by Francesca Brindle
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