4th Nov 2014 07:40
LONDON (Alliance News) - Weir Group PLC Tuesday reported a rise in order growth in the third quarter, as aftermarket orders in Oil & Gas offset sluggish performance in other divisions.
Third-quarter orders rose 14% on a constant currency basis. Revenue and operating profit are higher than last year with double digit revenue growth offset somewhat by a strong pound, estimated to lower earnings by around GBP38 million in the full year, Weir said.
Minerals orders rose a reported 1% in the 13 weeks to October 3, as a 12% rise in aftermarket orders offset an 18% drop in original equipment orders in what Weir called "challenging" mining end markets and lower commodity prices.
Oil & Gas orders increased 40%, ahead of expectations, with 44% growth in aftermarket orders and new equipment orders up 28% and Weir said it now expects divisional revenue to be higher than previously forecast for the full year, assuming demand growth continues at the same rate.
Power & Industrial orders fell 4% in the quarter, hurt by project delays, and Weir said revenue and margins are expected to be lower than 2013 levels.
Weir said full-year revenue and profit growth expectations remain unchanged at a similar level to 2013.
"Weir is well placed to deliver good organic growth in 2014, in line with our earlier guidance," Chief Executive Keith Cochrane said.
By Ian Edmondson
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