Weir Group PLC
18 January 2006
18 January 2006
THE WEIR GROUP PLC
TRADING UPDATE
The Weir Group PLC issues a trading update in advance of its preliminary
announcement for the 12 months ending 30 December 2005 due to be published on 21
March 2006.
Overall, on a like for like basis, turnover from continuing operations for the
second half of the year will be more than 10% above the same period last year
and all divisions reported second half profits ahead of those achieved in the
first half. Profit before tax, restructuring costs and discontinued operations
for the 12 months ended 30 December 2005, will be ahead of last year and towards
the upper end of Reuters market estimates. (See Footnote.)
Cash generation remains healthy despite the effects of cash restructuring costs,
share buy back and increased working capital employed to support the stronger
order book.
Divisional Trading Comment
Engineering Products
In our Engineering Products Division we achieved good levels of growth in order
input, sales and profits when compared to 2004.
The Minerals businesses, as anticipated, continue to benefit from buoyant market
conditions and were major contributors to a strong second half financial
performance for the Engineering Products Division.
The Clear Liquid businesses achieved good levels of order input in the second
half of the year. The results from Gabbioneta in the final quarter, and the
ongoing restructuring of the Weir Pumps business both contributed to the second
half improvement in the profitability of the Engineering Products Division.
All Valves & Controls businesses delivered an improved performance in the second
half of the year. The restructuring of the UK operation is nearing completion
and the early benefits are reflected in the last quarter figures.
Engineering Services
The Services Division delivered improved progress in turnover in the second half
with profits slightly ahead of those achieved in the first half of the year. The
division has continued to fund investments for its future growth in its core
markets.
Defence, Nuclear & Gas
The Defence, Nuclear and Gas Division continued to make progress in the second
half of the year with stronger sales and margins from both operations. A
continued good level of enquiries, coupled with higher levels of sales, will
further improve conditions in 2006.
Outlook for 2006
The strong level of input growth in 2005 and strength of the year-end order book
is expected to translate to higher sales across all divisions in the first half
of 2006. Restructuring benefits will be evident in the improved margin
performance from the UK Valves & Clear businesses, while the addition of
Gabbioneta will also contribute to further progress against 2005.
Footnote:
The profit range of analysts forecasts on Reuters Knowledge Consensus at
9 January 2006 was £57.50 m to £62.00 m with consensus at £59.50m.
Contact details: The Weir Group PLC
Mark Selway, Chief Executive Tel. 0141 637 7111 (switchboard);
Helen Walker, Public Relations Manager (Mobile: 07789 032296)
The Maitland Consultancy Tel. 020 7379 5151
Suzanne Bartch
This information is provided by RNS
The company news service from the London Stock Exchange
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