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Jacobs Engineering CEO Craig Martin on the outlook for the engineering industry and the economy’s impact on the company’s growth.
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Time now for a closer look at one of my compelling -- Jacobs engineering provides -- -- services industrial commercial.
And government clients worldwide now since I -- the company on September 12 that shares -- jumped about 30%.
Joining me now in exclusive interview with Jacobs is present today.
There is president and CEO Greg -- not -- first walk congratulates is -- stock started making nice little bit of rebound there.
Thank you thank you very much -- You run a global business you know we just had a statement out by the EU and you know of course we have the president's State of the Union Address here recently.
What do you make of that confusion and did the anxiety would that that's going on around the world you also of governments do you think there are taking the right action.
And letting the free markets sort of -- us or.
Maybe there's too much intervention.
Well frankly when I look at the markets that we serve.
There's a lot to be concerned about but it's it's macro issues that are ones that I think will sort themselves out.
And I believe the free market will do the right things so that when we look at our business.
We have every expectation and we're going to be able to see continued growth and continued opportunity pretty much across the -- You know when I look at your business -- -- -- your tell your most recent earnings supportive backlog is at fourteen and a half billion dollars.
Looks like most areas of the business of doing well the stocks made something of a rebound but.
Is there -- is there something out there that's really.
That has most I guess a lot of people on Wall Street -- -- what what's that one thing that still.
About your industry or your company that sort of a question mark.
Well I don't know that there's anything -- about our company particularly or the industry that's a big question mark.
Except for those macro issues that you just described and I that's causing a lot of -- his hesitancy in the industry generally.
-- the other hand when I look at our position where -- we're forecasting -- tween eight and 22% growth this year the very bottom line.
When I look at our prospects when I look at where the energy of the marketplace is.
I have every reason think that businesses like our certainly our business.
Is on a solid growth track we've been able to grow 15% compound for a decade now.
And we look to grow 15% loss on a compound basis as we go forward.
You talk about your industry and in the filing being very fragment -- -- that no -- competitor has a significant market share and you guys have been pretty acquisitive of late.
Did you see that as an opportunity -- we around the world to perhaps really go out there -- start making acquisitions.
And become the you know take a lot of markets here.
I think so I think consolidation will be a factor in our industry for a long time.
It is usually fragmented and there's a lot of opportunity to acquire good companies at attractive prices and then leverage that into growth.
Historically we've gotten about a third of our growth -- a little more from acquisitions and we see every reason to think will be able to continue to do that -- Earnings -- 420.
Million in 2008.
Of course we've been in a serious global recession if you well you see it turning around and when -- think maybe you can eclipse that number again.
Well I'd like to think -- be able to do that the next couple of years frankly.
In the recession hit everybody in our industry pretty -- we have recovered we've clearly not been on a growth track for the last couple years but that that.
Higher end point was after three years of 46% compound growth at the bottom line.
And it's probably gonna take a year to more before -- -- that number.
I -- say what do you think you have the watching your -- I think you've done a fantastic job thank you very much Greg Martin CEO of Jacobs engineering.
Thank you.
