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Jacobs Engineering Group Inc. Reports Earnings for the Second Quarter of Fiscal 2016

JEC, +3.13% today announced its financial results for the second quarter of fiscal 2016 ended April 1, 2016.

Second Quarter Fiscal 2016 Highlights:

  • U.S. GAAP net earnings and EPS of $65M and $0.54, respectively;
  • Adjusted net earnings and EPS of $91M and $0.75, respectively;
  • Backlog at April 1, 2016 of $18.2B, steady at Q1 of fiscal 2016 level;
  • Restructuring – cost reduction initiative delivering strong results – now targeting annual savings of $240M-$270M;
  • Cash flow from operations of $238M; an increase of $272M over the prior year;
  • Repurchased 800 thousand shares of common stock during the second quarter of fiscal 2016 for $30M.

Jacobs reported today adjusted net earnings of $91 million, or $0.75 per diluted share, on revenues of $2.8 billion for its second quarter of fiscal 2016 ended April 1, 2016 (U.S. GAAP net earnings and EPS were $65 million and $0.54, respectively). This compares to adjusted net earnings of $92 million, or $0.72 per diluted share, on revenues of $2.9 billion for the second quarter of fiscal 2015 ended March 27, 2015 (U.S. GAAP net earnings and EPS were $82 million and $0.64, respectively).

Included in the Company’s fiscal 2016 second quarter adjusted net earnings is a net benefit of $0.03 per share related to several items, including the release of a foreign tax reserve and a one-time benefit in noncontrolling interests relating to certain work performed by one of our partially owned subsidiaries; partially off-set by the impact of a customer bankruptcy and a litigation settlement. The Company's adjusted net earnings for the second quarter of fiscal 2016 exclude the after-tax costs related to certain restructuring activities that began during fiscal 2015 (the "2015 Restructuring") totaling $26 million, or $0.21 per diluted share.

Jacobs also announced total backlog of $18.2 billion at April 1, 2016.

Commenting on the results for the second quarter of fiscal 2016, Jacobs President and CEO Steve Demetriou stated, “I am pleased with the strong operational execution during the quarter, allowing the Company to mitigate challenges in certain end markets. The strength of our diversity, our improved project delivery performance and continued successful cost reduction efforts were key drivers in our ability to perform in the current environment. The Company’s new line of business organization and subsequent incremental reporting is enhancing discipline and accountability, while providing additional insight to our shareholders.”

Jacobs Chief Financial Officer Kevin Berryman added, “I would also like to note the sizeable improvement in cash flow and working capital for the quarter, both of which are indicative of a building momentum to become more effective in our working capital performance. Finally, our first half results give us greater confidence to reach our objectives for the year, and as a result, we are narrowing our guidance for the full year to an adjusted EPS of $2.90-$3.20.”

Jacobs is hosting a conference call at 11:00 a.m. Eastern Time on Thursday, May 5, 2016, which it is webcasting live on the internet at www.jacobs.com.

Jacobs is one of the world's largest and most diverse providers of technical, professional and construction services.

Statements made in this press release that are not based on historical fact are forward-looking statements. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as...


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