Jacobs Engineering Group Inc (JEC) has reported a 0.73 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $29.64 million, or $0.24 a share in the quarter, compared with $29.86 million, or $0.24 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $93.13 million, or $0.77 a share compared with $98.06 million or $0.80 a share, a year ago. Revenue during the quarter dropped 15.28 percent to $2,640.59 million from $3,116.95 million in the previous year period. Gross margin for the quarter expanded 116 basis points over the previous year period to 16.35 percent. Total expenses were 96.86 percent of quarterly revenues, down from 98.27 percent for the same period last year. This has led to an improvement of 141 basis points in operating margin to 3.14 percent.
Operating income for the quarter was $82.81 million, compared with $53.83 million in the previous year period.
Commenting on the results for the fourth quarter and fiscal year 2016, Steve Demetriou, Jacobs chairman and chief executive officer said, "While facing significant market challenges throughout FY2016, we implemented a global realignment into four lines of business and successfully executed against a significant restructuring and cost reduction initiative. This has reinforced greater accountability and improved project execution across Jacobs, all while conducting a far-reaching strategic review. Although certain global markets continue to face economic headwinds, we are now pivoting to sales growth and believe our more efficient cost structure, end-market diversity and margin focus will result in increased profitability in FY2017."
For financial year 2017, Jacobs Engineering Group Inc forecasts diluted earnings per share to be in the range of $3 to $3.30 on adjusted basis.
Debt comes down significantly
Jacobs Engineering Group Inc has recorded a decline in total debt over the last one year. It stood at $387.75 million as on Sep. 30, 2016, down 35.14 percent or $210.05 million from $597.80 million on Oct. 02, 2015. Total debt was 5.27 percent of total assets as on Sep. 30, 2016, compared with 7.68 percent on Oct. 02, 2015. Debt to equity ratio was at 0.09 as on Sep. 30, 2016, down from 0.14 as on Oct. 02, 2015. Interest coverage ratio improved to 16.75 for the quarter from 13.04 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
