A brief trading update from AMEC since they announced their half year results in August. They say:
Still trading in line with expectations.
The group's outlook remains unchanged and the financial position of the group remains strong.
Expect to see modest underlying revenue growth in 2014 for its existing operations.
The mix of business will result in a slight reduction in group margins compared to last year.
As in 2013, profits and cash flow generation will be second-half weighted.
So an in line steady as she goes type of statement in what is looking like a transitional year for AMEC before they hope to complete the acquisition of Foster Wheeler. The shares have traded sideways since the results and have fallen again with the market recently towards their lows for year. If the deal completes in Q4 as expected this may still afford a buying opportunity around this years lows or below if stock flows back from the US post the deal. In the meantime the shares look reasonable value on around 13x this years earnings with an expected 4.3% yield, although I note there have been further downgrades since the interims. At least this statement shouldn't lead to more.