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Company books loss on disposals

Weir sells two overseas businesses

Keith CochraneWeir Group, the engineering company, is selling two renewables-focused businesses in a deal worth up to £36.7 million.

It is disposing of Pennsylvania-based American Hydro Corporation and Spain’s Ynfiniti Engineering Services as part of an ongoing £100m asset disposal programme.

The businesses were acquired in 2010 and generated a combined operating profit of £1.4m last year, on revenues of £38m. Weir said it would book a loss of about £5m on the sales.

The Group said trading in April and May was consistent with the trends seen in Q1 and in-line with expectations.

Orders for the five months to the end of May were 15% below the prior year period (Q1: 21% lower) with orders and revenues in April and May slightly lower than the prior year.

As a result, the Group remains on track to meet its prior guidance for first half profits, ahead of current market expectations. Underlying cash generation remains robust.  There is no change to the Group’s prior full-year guidance as outlined on 28 April..

Photo: Keith Cochrane, CEO, Weir Group

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