Shares Of Engineering & Construction Firms Drop

HARTFORD, Conn. (AP) — Shares of engineering and construction firms fell sharply Monday as profit-taking sank the stocks that have risen in the past several weeks, analysts said.

"These things held up better than most others. On a day like today, people will blow it out," analyst Heiko Ihle of Gabelli & Co. said in an interview.

Broadpoint AmTech analyst Will Gabrielski said investors were profit-taking. "Nothing specific happened today," he said in an interview.

In a note to investors, Gabrielski reiterated his "Buy" rating for Foster Wheeler AG and raised his price target to $28 from $25.

He said the Clinton, N.J. company had strong first-quarter bookings, and expects solid backlog results when it reports first-quarter results May 6.

"Despite investor concern post-fourth quarter results, the company has executed exceptionally well on booking new projects," Gabrielski said. "We reiterate our positive view on backlog growth in 2009 and believe our estimates are prudently on the conservative side."

Analysts surveyed by Thomson Reuters expect first-quarter earnings of 69 cents per share.

Gabrielski said more details on possible federal domestic carbon legislation "would be a long-term positive given the company's technical developments and pilot demonstration projects."

Shares of Foster Wheeler fell $2.11, or 9.6 percent, to $19.68 in afternoon trading as overall markets retreated. Jacobs Engineering Group Inc. dropped $2.90, or 6.2 percent, to $43.70 and KBR Inc. fell $1.05, or 6.5 percent, to $15.19. And Fluor Corp. dropped $2.54, or 6.2 percent, to $38.61.