Engineer Amec gets boost from American pick-up
Friday 09 January 2004
Shares in Amec, the engineering group, jumped 6 per cent after it said conditions had improved in its North American markets.
The company, one of the few UK-listed engineers with a major international presence, also stands to gain work in Iraq. With its US partner Fluor, Amec has bid for $2bn of work to rehabilitate Iraq's oil fields. The outcome of this tender, which has been delayed three times, is now expected to be announced next month.
In a trading update yesterday, the group was most positive about its North American business, which provides about a quarter of turnover, as clients are expected to start spending on infrastructure again.
"In North America, evidence suggests that the decline in investment in Amec's industrial markets witnessed over the past two years has been halted. Enquiry levels have increased and there has been some resumption of project activity in the mining, forest industry and food and beverage sectors," the company said. "Amec expects to benefit from a number of major contract awards anticipated in its end markets in the first quarter of 2004."
However, it warned that conditions in the US commercial building market "have remained difficult", with its Construction Management division failing to break even in the second half of 2003. Performance in the Earth and Environmental business improved in the second half, "reflecting recovery in US defence spending". Overall, the group said it had met expectations for last year.
Sir Peter Mason, the chief executive, said: "I am pleased with Amec's performance in 2003, with sound progress having been achieved despite challenging conditions in some of our markets.We see improving prospects in our North American industrial markets and are well positioned to benefit when our clients resume major capital investment programmes."
The company said it remained "well positioned" in oil and gas, transport and infrastructure, even though, in the UK, rail maintenance contracts are being taken back in house by Network Rail.
Arbuthnot, the broker, said: "The company is confident for 2004 based on the level of interest in projects but commitments are not yet made so some caution is needed."
Amec shares closed up 14.75p at 267p.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Nick Kyrgios calls former Olympian Dawn Fraser a 'blatant racist' after she tells Wimbledon star to 'go back where their parents came from'
- 3 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Tube strike July 2015: Is it still on? Everything you need to know about the industrial action
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...