Weir Group has rocky first quarter
Engineering giant Weir Group said that strong first quarter trading in its minerals and industrial businesses made up for a plunge in orders in its oil and gas division.
Engineering giant Weir Group said that strong first quarter trading in its minerals and industrial businesses made up for a plunge in orders in its oil and gas division.
Order input fell 26% on a like-for-like basis in the company's oil and gas division, which the firm put down to rapid changes in the pressure pumping market.
It said it now expected full year revenues from its SPM and Mesa businesses to be slightly lower than 2011 and below prior guidance.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, Weir said that order input in its minerals division was up 18% compared to the previous year and ahead of its expectations.
Original equipment input was 31% higher as a number of larger projects reached the order commissioning stage, while aftermarket input was up 10% against the prior period.
The company highlighted original equipment activity increasing in Africa and South America with a number of contract wins, including the first orders for its organically developed screens range.
Its power and industrial division also fared well, with order input increasing 27% on a like-for-like basis in the first quarter, ahead of its expectations.
This was underpinned by a strong performance from American Hydro and the benefits of strategic initiatives to accelerate growth across global valve markets, the firm said.
Net debt at the end of March was higher than that reported at the end of 2011, primarily reflecting completion of the acquisition of Novatech LLC, Weir said.
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published