Amec Foster Wheeler reports dip in profits
INTERNATIONAL engineering group Amec Foster Wheeler has reported its first annual results since its 2014 merger.
The company, the result of the $3.2bn marriage of UK company Amec and American firm Foster Wheeler last year, has its UK HQ in Knutsford, the home of its nuclear operations.
The inaugural results of the combined group were in line with guidance, with revenues steady at just under £4bn as a decent uplift in emerging markets and its clean energy business overcame weakness in the US and Europe.
Profits fell 39% to £155m, “largely” due to the cost of buying Foster Wheeler, according to the company, but the dividend increased 3% to 43.3p a share.
Chief executive Samir Brikho said: “I am pleased to report that we have delivered 2014 results in line with expectations. Looking ahead, I believe our low-risk, multi-market model combined with the additional benefits from our integration and cost savings programmes, is a strong platform from which to create long-term value for shareholders.”
The group, which has 40,000 staff across 50 countres, said that it expected the reversal of last year’s adverse currency moves to add about £150m to its revenue next year, and upped its cost savings target from the acquisition to £125m.
It added though “For 2015, we expect to see a continuation of recent trends – with growth in clean energy, downstream and Middle Eastern Oil & Gas markets offsetting tougher conditions elsewhere. This mix of performance, together with the increased customer pricing pressure and cost saving plans, is expected to lead to a modest reduction in like-for-like trading margins.”
