Amec to sell businesses after profits warning

British engineering group Amec put businesses up for sale and pledged major improvements as part of a strategy unveiled by its new boss today.

Samir Brikho, who took the helm at the start of October, said the company had untapped potential but suffered from complexity and an excessive cost base.

He will sell businesses involved in building and facilities services and focus the company on core areas such as oil and gas, minerals and metals mining and the nuclear and wind energy industries.

His strategy update was accompanied by a warning that profits for 2006 would be £15m (€22m) lower than previously hoped, reflecting restructuring and legal costs in UK construction and weaker than expected trading in some parts of the business.

Amec will also take £90m (€133.5m) of exceptional items, including £70m (€103.8m) to cover litigation on three major North American disputes.

Shares in Amec were 2% lower today.