WS Atkins optimistic about future earnings

WS Atkins says that full-year results will be in line with market expectations despite some headwinds and forecasts an improvement in earnings in the current year.

"Atkins' geographic and sector diversification continues to provide resilience which will be reflected in the reported results for the year ended March 31st 2012," the group said.

The design and engineering consultancy group said that the UK region has ended the year well despite the previously reported delay in contract awards in the rail signalling business. Second-half operating margins for this region are expected to be better than those seen in the first half.

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Also benefiting from margin improvement is the North American consultancy business even though it had seen the slow start to the second half continue into the fourth quarter.

Elsewhere, WS Atkins's operations in the Middle East and Energy have enjoyed strong market conditions, the statement said.

The group said it is progressing well with its three strategic themes - "operational excellence, portfolio optimisation and sector focus" as reported in November - "positioning it to deliver further earnings growth in the year ahead."

BC