Trading Statement
January 08 2004 - 1:00AM
UK Regulatory
RNS Number:9836T
AMEC PLC
08 January 2004
Embargoed for release at 07:00 8 January 2004
AMEC plc
January 2004 - PRE CLOSE TRADING UPDATE
Trading in line with expectations
AMEC plc, the international engineering services company, is pleased to confirm
that overall performance in 2003 was in line with the Board's expectations of
sound progress, as disclosed at the time of the Company's interim results
announcement on 28 August 2003.
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. AMEC expects to
benefit from a number of major contract awards anticipated in its end markets in
the first quarter of 2004.
Conditions in the US commercial building market have remained difficult, with
Construction Management failing to break even in the second half.
Performance in the Earth and Environmental business improved in the second half,
reflecting recovery in US defence spending.
Average weekly net debt* for the full year was #360m as compared to #330m in the
first half, reflecting the normal seasonal pattern, lower levels of advance cash
and investments in regeneration partnerships and PPP. Net debt as at 31 December
2003, reflecting the acquisition of SPIE S.A., was approximately #250m (2002:
#37.3m).
Outlook
AMEC remains well positioned in oil and gas, transport and infrastructure
markets. Notwithstanding rail maintenance contracts being taken back in house by
Network Rail, prospects in these markets continue to be encouraging.
Industrial markets in North America are showing early signs of recovery and
there is the prospect of a number of major contract awards in the first quarter
of 2004. This, together with opportunities in Iraq, gives the Board confidence
that AMEC will make further progress in 2004 in line with its earlier
expectations.
Chief Executive, Sir Peter Mason KBE, said:
"I am pleased with AMEC's performance in 2003, with sound progress having been
achieved despite challenging conditions in some of our markets.
"I am confident that AMEC will show organic growth in 2004. Fundamentals in the
majority of our markets remain encouraging. We see improving prospects in our
North American industrial markets and are well positioned to benefit when our
clients resume major capital investment programmes."
AMEC expects to announce its preliminary results for the year ended 31 December
2003 at 7.00 a.m. on Thursday, 11 March 2004.
* The average is a pro forma and assumes SPIE was acquired on 1 January 2003 and
Spie Batignolles was disposed of on 1 January 2003.
Enquiries to:
AMEC plc + 44 (0)20 7634 0000
Analysts/Investors:
Sir Peter Mason KBE, Chief Executive
Stuart Siddall, Finance Director
Neil Jamieson, Director of Investor Relations
Media:
Juliet Sychrava, Director of Corporate
Communications
Nick Welsh, Manager Corporate Communications
www.amec.com
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
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