10th May 2006 07:00
Weir Group PLC10 May 2006 THE WEIR GROUP PLC 10 May 2006 Annual General Meeting - Q1 Trading Update The following is the text of the statement to be delivered by the Chairman, Sir Robert Smith, at this year's AGM on Wednesday 10 May 2006 at 12 noon: The level of orders booked by our continuing operations made good progressagainst the first quarter of 2005, building confidence in the Group's outlookfor 2006. Stronger first quarter sales in the Engineering Products businesses and theongoing benefits from restructuring in the UK Valves and Clear operationsagainst the comparatively weaker first half of 2005, support confidence in goodprofit progress in 2006. The Services Division has traded in line with expectations during the firstquarter of the year. Previously announced actions to improve the performance ofthe UK and USA operations are proceeding to plan. We continue to expect animproved full year result, with much of the progress expected in the second halfof the year. The Defence, Nuclear and Gas Division continued to secure new business in thefirst quarter, albeit below the same period in 2005 due to contract placementdelays. Further progress is expected in 2006 as a result of favourable patternsof trade coupled to a good level of contract enquiries. Overall we have started the year well against the comparably weaker firstquarter last year. This improved performance, together with ongoing operationalimprovements and our restructured portfolio of businesses increases ourconfidence in the outlook for 2006. We now expect profit before tax, goodwilland exceptional items to be at the upper end of recent market estimates (seenote below 1). 1. The range of market estimates for profit before tax, goodwill and exceptionalsitems for 2006, based on Reuters estimates, is £69.0m to £73.2m. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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