Amec Issues Profit Warning
Amec, a British engineering-services company, said Wednesday it plans to sell parts of the business and at the same time issued a profit warning.
The company said 2006 profit will be 15 million pounds (US$29 million; euro22 million) below previous expectations due to restructuring and legal costs at its U.K. construction unit and a weak performance in other projects.
Last year, the company reported profit before costs of 81.5 million pounds (US$160 million; euro121 million).
Amec also confirmed it will dispose of its building, civil engineering, facilities and property developments businesses along with its so-called public-private partnership portfolio.
Last month, Amec rejected a takeover approach from U.S. private equity firms Texas Pacific Group and First Reserve Corp. Earlier in the year, Amec also rejected an approach from Australia's Downer EDI Ltd.
Samir Brikho, who was recently appointed chief executive, said he was confident of the company's future.
"The business suffers from complexity and an excessive cost base, but we now have a clear and deliverable plan to turn it around and transform financial performance," Brikho said. "Amec will focus on high-end engineering and consultancy services in selected energy and industrial markets."
Amec shares slipped 2 percent to 416.75 pence (US$8.18; euro6.17) on the London Stock Exchange.