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Half-year figures for engineer

Weir making good progress, says Stanton

Jon StantonWeir Group said it had made good progress in its main markets as it reported a 12% rise in pre-tax profits (down 8% at constant currency rates).

Jon Stanton, chief executive, said:  “The first half of 2017 saw the group make good progress as we fully captured opportunities in our main markets. 

“In North America, the Oil & Gas division delivered a great set of results with margins rapidly improving in recent weeks.  Demand increased sequentially, demonstrating shale’s position as a competitive and sustainable source of global energy supply.

“Mining markets also continued to improve with good demand for Weir’s technology as customers sought to increase productivity.

“In our two main businesses we are transitioning from an intense downturn into a recovery and growth phase.  Our focus is on ensuring we take full advantage of improving markets and further enhance our leadership positions by investing in our distinctive competencies – People, Customers, Technology, and Performance – where we have made substantial progress in the first half.

“Looking to the rest of the year and assuming supportive commodity prices, expectations for our Oil & Gas division were recently upgraded, while guidance for our Minerals division remains unchanged. Overall, the Group expects to deliver strong constant currency revenue and profit growth, with good cash generation and substantial de-leveraging.”

Highlights

·      Accelerated recovery in North American oil and gas reflected in updated full year outlook (17/07/2017)

o  69% growth in North American revenue, strong operating leverage and modest pricing improvement

o  Growth accelerated in Q2, driving upgrade to full year guidance

·      Mining markets also improved supported by industry investment in productivity gains

o  11% order growth in H1 with a book-to-bill of 1.12

o  H1 operating margins reflect investment in growth, phasing of revenues and plant moves

·      Flow Control was loss making as a result of one-off charges of £13m

·      Order book puts Group in position to deliver strong constant currency revenue and profit growth in 2017

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