20th Jan 2005 07:00
Weir Group PLC20 January 2005 20 January 2005 THE WEIR GROUP PLC TRADING UPDATE The Weir Group PLC issues a trading update in advance of its preliminaryannouncement for the 12 months ended 31 December 2004 due to be published on 21March 2005. Overall, on a like for like basis, turnover for the second half of the year willbe more than 10% above the same period last year. Profit before tax, goodwilland exceptional items for the 12 months ended 31 December 2004, will be ahead oflast year and broadly in line with recent market estimates (see note 1 below). Cash generation remains healthy despite the effects of exchange rate movementsand, at the year end, the business was in net funds. Divisional Trading Comment The Minerals Division is experiencing buoyant market conditions delivering salesand profit growth in line with expectations for the full year. The Services Division delivered the anticipated progress in turnover whilecontinuing to fund investment for future growth. The Clear Liquid Division delivered good levels of order input in the secondhalf of the year. Increased second half sales and a higher year end order bookare expected to deliver further progress in 2005. The Valves & Controls Division continued to grow its input and will achievesales growth when compared to 2003. In the UK, we are undertaking a strategicreview to address the issues which were outlined in the first half and whichhave continued to a similar extent into the second half of the year. A furtherupdate will be given in March. The US and French businesses continue to makeprogress and their primary power markets are showing early signs of growth. Techna made progress in the second half of the year, despite some slippage innew project work. A continued good level of enquiries, coupled with higher levelof sales will further improve conditions in 2005. Outlook for 2005 The strong level of input growth in 2004 is expected to translate to highersales across all divisions in the first half of 2005. Note 1:The average of market estimates for profit before tax, goodwill and exceptionalitems for 2004, based on estimates published in the last three months by thehouses listed below, is £58.5m:Arden Partners, UBS, Williams deBroe, DrKW, Deutsche Bank, Rowan Dartington Contact details: The Weir Group PLCMark Selway, Chief Executive Tel. 0141 637 7111 (switchboard);Helen Walker, Public Relations Manager (Mobile: 07789 032296) The Maitland Consultancy Tel. 020 7379 5151Angus Maitland/Michelle Jeffery (Mobile: 0798 9977837) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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