Amec's long-term outlook "encouraging"

Civil engineering giant Amec has confirmed today (Thursday) that the outlook for 2003 continues to be in line with its expectations outlined at the time of its full year results in March.

Chief executive Peter Mason said that the level of orders received in recent months gives confidence that Amec will see an expected return to organic growth in 2004.

"We are well positioned in the oil and gas, transport and infrastructure markets such that the long-term outlook in the company's major markets remains encouraging," said a statement released ahead of the group's annual shareholder meeting this afternoon.

Turning to its main markets, Amec said the oil and gas business should remain buoyant; prospects in the transport sector remain encouraging; in highways, new contracts have been announced on the A1(M) and M60 motorways in the UK; and in airports, Amec recently announced a £56m contract for airfield pavements at London Heathrow airport's new terminal 5.

In infrastructure, contracts have created new business worth some £400m since the year-end, but in the industrial sector the US market remains depressed and there has been little change in Europe.

The statement added that the order book in the oil and gas, transport, infrastructure and industrial sectors, which represent three quarters of group turnover, has grown by nearly 10% to £4bn since the year-end.

Finally, Amec's executive director David Robson will retire from 31 July and be replaced by Carlos Riva who will head up the group's main operations in the UK and US.