Amec Foster Wheeler today (27 October 2016) said it expects to raise about £100m before the end of the year from the sale of three assets on the market, while the engineering group confirmed that it continues to target £500m of disposals by June 2017.
The listed company revealed that it is now in talks to sell its core boiler business and the rest of GPG to separate buyers. Investors were told that Amec believes this is its best option to achieve an acceptable level of proceeds.
It added that it has made good progress on improving the organisation structure and leadership team as well.
Jon Lewis (pictured), chief executive of Amec Foster Wheeler, said: "We are on course to deliver resilient trading results for this year and next despite the continuing weakness in some of our key markets. This is only possible due to the diversity of our business and the initial contribution from additional sustainable cost savings we started in June.
"We have made good progress on the wide-ranging review we initiated in the summer. This has reinforced my belief Amec Foster Wheeler is a strong brand, with great potential. The review has also confirmed a number of challenges and highlights a range of new opportunities across our markets, as well as a significant and structural cost saving opportunity.
"To offset the current market challenges, we need to do more to establish the full potential of these growth opportunities and the optimal configuration of our portfolio, and therefore the best actions to deliver the appropriate balance sheet and sustainable returns to our shareholders."