28th Apr 2016 06:42
LONDON (Alliance News) - Industrial valve and pumps maker Weir Group PLC on Thursday said trading in the first quarter was slightly ahead of its expectations, boosted by cost cutting and a resilient performance from its minerals arm.
The FTSE 250-listed company, which has been hit hard by the turmoil in the oil and gas and mining markets, said its like-for-like order input in the first quarter was down 22% year-on-year, with revenue declining by a broadly similar amount.
Revenue in the Minerals division, however, was stable on a like-for-like basis in the quarter, with input falling 5.0% but original equipment input better than anticipated.
"The group has maintained its focus on strong cash generation, aggressive cost reduction and developing the innovative solutions which have made Weir a global leader. This comes against the backdrop of ongoing challenges across our end markets," said Chief Executive Keith Cochrane.
As a result of the better-than-anticipated outcome for the first quarter, Cochrane said Weir said first profit should be slightly ahead of market expectations.
"Our full-year expectations remain unchanged, reflecting the slower recovery now anticipated in oil and gas markets," Cochrane added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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