Weir Q1 profits slide as project progress slows

First quarter revenues and profits were down at engineering giant Weir with input falling 14 per cent against the prior year's comparator, but 14 per cent higher than the preceding quarter.

First quarter revenues and profits were down at engineering giant Weir with input falling 14 per cent against the prior year's comparator, but 14 per cent higher than the preceding quarter.

Weir said it saw "good underlying sequential growth" in its minerals and oil & gas divisions and that, overall, trading was in line with expectations and guidance for the full year remained unchanged.

Original equipment orders were down 32% on a reported basis while after-market orders were up 2.0% but 1.0% lower like-for-like.

"Materially" lower oil & gas equipment sales meant first quarter revenues and operating profits were below the prior year, as margins were affected by one-off costs in relation to the continued restructuring of its pressure pumping business.

Orders were down 6.0% against the prior year at the minerals arm and Weir said its strong pipeline of future opportunities is seeing delivery dates for a number of projects delayed until the second half of the year.

In oil and gas, upstream markets remain "challenging" as the average number of US oil rigs dropped 12% lower year-on-year.

For the full year the group continues to expect continued gradual economic and end market improvement to help it achieve growth in the second half and "low single digit revenue growth and broadly stable margins" for the full year.

The the Glasgow-based FTSE 100 firm also confirmed rumours that chairman Lord Smith of Kelvin will step down in December after holding the role since July 2002. Non-Executive Director Charles Berry has been promoted to Deputy Chairman with immediate effect and will take over as Chairman from January 2014.

OH

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021