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.

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.

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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.