According to a report by Dodge Data & Analytics, a
leading provider of North American construction data, the domestic construction
industry is expected to expand by nine percent in 2015, building upon the five
percent growth achieved last year. For ENGlobal Corp. (NASDAQ: ENG), this
forecast industry performance could provide a platform for improved results
through the company’s award-winning engineering and construction division.
ENGlobal’s engineering and construction group delivers a
range of innovative, cost-effective automation, instrumentation and specialty
construction projects to customers around the planet, particularly in energy
market sectors. By offering everything from feasibility studies and conceptual
design to turnkey project responsibility, the company has built a formidable
presence in the engineering, procurement and construction management (EPCM)
market for more than a quarter of a century. With a global reputation for
state-of-the-art plant automation systems, ENGlobal has become a mainstay on
some of the engineering industry’s most prestigious lists, including Engineering
News Record magazine’s ‘Top 500 Engineering Design Firms’, which has listed the
company annually for more than a decade.
In recent months, the company has been impacted by the
downturn in energy commodity prices, which has affected many of its early 2015
orders. Despite this market turbulence, ENGlobal has remained well-positioned
for future expansion by refining its operational focus toward projects with low
levels of risk. As of the release of its first quarter results, the company
reported a healthy cash balance of more than $24 million, providing the
flexibility needed to weather the current market slowdown.
“While there is always room for improvement, I believe we
are in a strong financial position and poised for future growth,” Mark Hess,
chief financial officer of ENGlobal, stated in a news release. “We have pared
the company down to a smaller, more focused operation and reduced the risk
profile of the projects we are undertaking… These and other actions have
allowed the company to remain profitable, with positive cash flow during this
downturn.”
For prospective shareholders, ENGlobal’s versatility in the
face of less than ideal market conditions demonstrates the valuable industry
experience of its management team and makes the company an intriguing
investment opportunity moving forward. Look for ENGlobal to lean on its proven
track record of innovative EPCM solutions in order to promote continued
industry growth in the months to come.
For more information, visit www.englobal.com
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