Weir revenues increase

04-12-2007

Weir revenues increase
British engineering firm Weir has said it expects to report full-year profits at the top end of market expectations.

In a trading update the Scottish-based company said it had achieved a strong second-half performance as a result of positive market conditions across the mining, oil and gas and power sectors.

Weir said its revenue for the 44 weeks to November 2nd was 15 per cent higher on the previous year on a like-for-like constant currency basis.

Meanwhile recently acquired firm SPM Flow Control contributed around £55 million to Weir's revenues in the final 15 weeks of the period. Weir purchased the Texas-based company, which manufactures well service pumps and flow control equipment for the upstream oil and gas industries, in July.

As a result of the better-than-expected revenue growth, Weir said it now expected its full-year profit from continuing operations - before tax, intangibles, amortisation and exceptional items - to be at the upper end of current market forecasts.

Weir said it expected to report further progress across all its divisions in 2008, with its results next year also set to be buoyed by the inclusion of SPM's performance for the full 12 months.

In a separate statement the company confirmed it had agreed to acquire an African pumps business for $231 million (£113 million).

Weir is to buy the CH Warman Pump Group, a specialist pump business which primarily serves the mining and minerals processing industry throughout Africa, from Research and Development Pty Limited and CH Warman Holdings Pty Limited.

Commenting on the planned sale, Weir chief executive Mark Selway said: "This is an exciting deal for our minerals division, which transforms our presence throughout the fast growing sub-Saharan markets.

"It's a perfectly-aligned acquisition right in our sweet spot of high-margin, high-wear applications in high-growth specialist markets," he added.

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