Amec Foster Wheeler announces today its second half trading update, increasing its cost cutting targets, reducing future dividend payments and providing guidance for 2016, amidst continuing tough market conditions:
•Underlying Scope Revenue year to date in line with expectations
•Ongoing weak markets: H2 margins now expected to be below H1
•New group cost savings target increased by $55m to $180m (£120m) by 2017
•Renewed focus on improving performance in, or exiting, low growth areas
•Reducing ordinary dividend by 50%
Chief Executive Samir Brikho said,'Amec Foster Wheeler is a high quality and diversified business, and its financial performance remains relatively resilient, as the performance so far this year shows. However, we are not immune to the ongoing tough market conditions and we are managing the business on the assumption of an extended period of weakness.