Weir Group PLC
04 December 2007
THE WEIR GROUP PLC
4 December 2007
TRADING UPDATE
The Weir Group PLC today issues the following trading update in respect of the
52 weeks ending 28 December 2007.
In the second half, the Group's financial performance has been strong as a
result of better than expected revenue growth reflecting continued strong market
conditions 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 like
constant currency basis. Additionally, revenues of around £55m were recognised
by 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 of
current 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 and
profit leading to continued improvement in underlying operating margins when
compared to 2006.
The integration of SPM is proceeding well. Year to date revenue is ahead of
initial expectations and we now expect revenue for calendar year 2007 to be
around $350m. Operating margin remains broadly in line with expectations as
outlined in our acquisition announcement.
Engineering Services
As anticipated, revenue for the 18 week period to 2 November 2007 is broadly in
line with 2006. As a result of the 2006 restructurings undertaken in the Middle
East, 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 with
the prior year period.
Outlook for 2008
----------------
Further progress across all divisions is anticipated in 2008 as a result of the
continuing level of input growth in 2007 and the inclusion of SPM for a full
year.
Footnote:
1. The range of analysts' forecasts on Reuters Knowledge Consensus at 29
November 2007 for Continuing Operations profit before tax, intangibles
amortisation 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 year
results to the equivalent prior year period for those businesses that have been
part of the Group throughout the current and prior year reporting period, on a
constant currency basis.
3. The Group expects to publish its preliminary results for the year ended 28
December 2007 on 11 March 2008.
Contact details: The Weir Group PLC
Mark Selway, Chief Executive Tel. 0141 637 7111 (switchboard);
Helen Walker, Public Relations Manager Tel. 0141 308 3739 (Mobile: 07789 032296)
Maitland Tel. 020 7379 5151
Suzanne Bartch
Peter Ogden
This information is provided by RNS
The company news service from the London Stock Exchange
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