Amec Foster Wheeler said it plans to increase its cost savings target to $180million in the next two years.
The company posted its second half trading update for the year, increasing its cost cutting targets and reducing its future dividend payments.
Amec Foster Wheeler said its margins for the second half are expected to also be lower than the first.
Ordinary dividends have also been reduced by 50%.
Chief Executive Samir Brikho said the company had “decided to intensify our actions” as it adapts to a challenging market place.
He 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.
“For more than a year – across many parts of our business – we have seen customers reducing capital expenditure and putting more pricing pressure on the supply chain.
“We see no sign of these trends changing.
“At our half year results, I said our priorities were to adapt to challenging markets and to stay lean and efficient.
“We have decided to intensify our actions. We have identified, and continue to seek, further cost savings.
“We are committed to increasing our focus on higher growth markets. In parts of our business we need to do better – so we are progressing plans to improve performance or exit those markets.
“We believe that taken together these actions will underpin our performance.
“In light of the ongoing market conditions, we are taking the prudent step of cutting our ordinary dividend payments by fifty per cent, starting with the final dividend for 2015.”
Source: Energy Voice
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