Amec says trading in line, warns on currency
LONDON, April 23
LONDON, April 23 (Reuters) - British engineering firm Amec said on Wednesday it was on track to meet expectations, although the strengthening of the pound against North American currencies would hit earnings.
The company, which provides services and equipment for the oil and gas, mining, nuclear and renewable energy sectors, added that the acquisition of Swiss-based rival Foster Wheeler would be completed by the third quarter.
Amec announced it had agreed to buy Foster Wheeler earlier this year in a move to expand into growing markets such as Latin America and the Middle East, as well as enter the U.S. midstream industry, which has become increasingly lucrative due to the shale boom.
The engineer said less favourable exchange rates this year compared to last would reduce revenue by around 250 million pounds ($420.59 million) and EBITA (earnings before interest, tax and amortisation) by around 25 million pounds for the full year.
The order book at 31 March 2014 was 4.2 billion pounds, up from 4.1 billion pounds at the end of 2013. ($1 = 0.5944 British Pounds) (Reporting by Stephen Eisenhammer, editing by Louise Heavens)