4th Dec 2007 07:02
Weir Group PLC04 December 2007 THE WEIR GROUP PLC 4 December 2007 TRADING UPDATE The Weir Group PLC today issues the following trading update in respect of the52 weeks ending 28 December 2007. In the second half, the Group's financial performance has been strong as aresult of better than expected revenue growth reflecting continued strong marketconditions across the mining, oil and gas and power sectors. Revenue for the 44 weeks to 2 November 2007 was 15% ahead on a like for likeconstant currency basis. Additionally, revenues of around £55m were recognisedby SPM for the 15 week post acquisition period to 2 November 2007. As a result, we now expect profit from continuing operations before tax,intangibles amortisation and exceptional items to be around the upper end ofcurrent Reuters market estimates. Divisional Trading Comment-------------------------- Engineering Products In the 18 week period to 2 November 2007, the Engineering Products Division(excluding SPM) has achieved good levels of growth in order input, revenue andprofit leading to continued improvement in underlying operating margins whencompared to 2006. The integration of SPM is proceeding well. Year to date revenue is ahead ofinitial expectations and we now expect revenue for calendar year 2007 to bearound $350m. Operating margin remains broadly in line with expectations asoutlined in our acquisition announcement. Engineering Services As anticipated, revenue for the 18 week period to 2 November 2007 is broadly inline with 2006. As a result of the 2006 restructurings undertaken in the MiddleEast, USA and UK profitability has, however, improved over the same period. Defence, Nuclear & Gas The Defence, Nuclear and Gas Division performed in line with expectations.Operating profit for the 18 week period to 2 November 2007 is consistent withthe prior year period. Outlook for 2008---------------- Further progress across all divisions is anticipated in 2008 as a result of thecontinuing level of input growth in 2007 and the inclusion of SPM for a fullyear. Footnote:1. The range of analysts' forecasts on Reuters Knowledge Consensus at 29November 2007 for Continuing Operations profit before tax, intangiblesamortisation and exceptional items was £105.5m to £114.5m with a consensus of£110.1m. 2. Like for like revenue growth refers to the comparison of current yearresults to the equivalent prior year period for those businesses that have beenpart of the Group throughout the current and prior year reporting period, on aconstant currency basis. 3. The Group expects to publish its preliminary results for the year ended 28December 2007 on 11 March 2008. Contact details: The Weir Group PLCMark Selway, Chief Executive Tel. 0141 637 7111 (switchboard);Helen Walker, Public Relations Manager Tel. 0141 308 3739 (Mobile: 07789 032296)Maitland Tel. 020 7379 5151Suzanne BartchPeter Ogden This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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