Morning Briefing - May 08, 2019
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May 08, 2019

Jacobs Talks Group Leadership Change, Hanford Business

By ExchangeMonitor

Dallas-based Jacobs Engineering is getting new leadership in the business division that manages its operations for the Department of Energy.

Terry Hagen, Jacobs’ chief operating officer and president for the Aerospace, Technology, and Nuclear group, will retire from leadership effective June 3.

He will be succeeded by Dawne Hickton, a former CEO and vice chair of RTI International, a titanium producer purchased by Alcoa in 2015. She has also served on the Jacobs board for four years, Chair and CEO Steve Demetriou said during the company’s quarterly earnings call Tuesday.

The business, which serves clients ranging from NASA to DOE, recorded more than $1 billion in revenue for the latest quarter, up from $923 million a year ago. The ATN segment’s operating profit was about $74 million for the first three months of the year, which is Jacobs’ second quarter for fiscal 2019. That was up from $52 million a year earlier.

During the call, Demetriou expressed optimism about Jacobs and subsidiary CH2M retaining the Central Plateau Cleanup contract at the Hanford Site in Washington state. Jacobs is also a bidder for another Hanford contract, the Tank Closure Contract, Hagen has said previously.

The Energy Department issued requests for proposals for both contracts in February. Demetriou said he expects awards before the current fiscal year ends Sept. 30. “We are excited because we are actually involved in two programs there,” at Hanford, he said. BWX Technologies also said recently it is competing for both contracts.

Jacobs is also a partner in AECOM-led Savannah River Remediation, which recently received an 18-month extension to remain in charge of liquid waste management at the Savannah River Site in South Carolina through September 2020.

The company raised its earnings per share projection for the 2019 fiscal year to the $4.45 to $4.85 range, up from the prior guidance of $4.40 to $4.80 per share.