11th May 2005 12:10
Weir Group PLC11 May 2005 Embargoed until 12.10pm on 11 May 2005 The Weir Group PLC 111th Annual General Meeting Wednesday 11 May 2005 The following is the text of the statement delivered bythe Chairman, Sir Robert Smith, at this year's AGM. The Group's outlook for 2005 remains in line with market expectations as set outin the annual report. The level of orders booked in the first quarter hascontinued at a satisfactory rate albeit slightly below an exceptionally highfirst quarter in 2004. New orders in the Engineering Products businesses continue to support ourconfidence in an improving profit performance in the second half of the year.First half results will be affected by the previously announced restructuringplans in Valves and Clear Liquid's UK operations, which I can report arecurrently proceeding to approved budgets and schedules. The March fire in the UKtest shop at Weir Pumps will delay £5.0m of sales and £2.0m of contribution,which we expect to recover in the second half of the year. Despite the effects of work in Iraq being delayed by security and governmenttransition issues in the first half, the Services Division has continued toexperience good rates of enquiries and is still expected to make progress in2005. Our Techna Division continued to secure new business in the first quarter,including further sulphate removal work in Brazil and five new ship sets of gasstorage at Weir LGE, our liquid gas storage business. In line with normal trading patterns and taking account of the effects ofrestructuring in 2005, most of the progress is expected to be delivered in thesecond half of the year, with the first half marginally behind the same periodin 2004. In March, we announced a £50m on-market share buyback programme and thiscommenced on 4 April. As at 10 May 2005, the company has bought back 1.3 millionshares. I can also confirm that the operational activities, new product developments andgeographic expansion continue to add to the quality of our business, andtogether with the stronger backlog than at the same time last year, support theoutlook provided at the preliminary results. The Weir Group PLC 149 Newlands Road, Glasgow G44 4EX This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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