Trading Statement

RNS Number : 1848L

Weir Group PLC

17 July 2017

 

The Weir Group PLC trading update

^{This announcement contains inside information}

Updated 2017 outlook reflects accelerated recovery in North American oil and gas markets

The Weir Group PLC today announces an update to its full year guidance for 2017.

In recent weeks, upstream North American markets have recovered more strongly than formerly anticipated.  Higher levels of frack fleet utilisation and significant tightening of industry capacity are both benefiting the Group's Oil & Gas division.  As a result, it has seen increased volumes, stronger operating leverage and modest pricing recovery ahead of prior expectations, and has delivered low double-digit operating margins in the first half.  

Assuming supportive market conditions continue, the division is now expected to deliver low-teens operating margins through the second half with full year revenues and operating profits that are above the upper end of analysts' estimates. 

At Group level, this growth will be partially offset by one-off charges to operating profit of £13m related to previously announced legacy contract delivery challenges in the Gabbioneta business, part of the Group's Flow Control division.  Expectations for the Minerals division remain unchanged.

The updated outlook for the Group's full year performance is now for strong constant currency revenue and profit growth.  As previously indicated, profits will be weighted to the second half of the year. 

The Group will publish its Interim results on 27 July 2017, with a live webcast and management presentation at 0830 BST.  Registration details are available at www.investors.weir.

The person responsible for the release of this announcement on behalf of The Weir Group PLC is Christopher Morgan, Company Secretary and Group General Counsel.

Enquiries:
Investors: Stephen Christie	[phone] / (0) 7795 110456
Media: Raymond Buchanan	[phone] / (0) 7713 261447
Brunswick: Patrick Handley / Diana Vaughton	[phone]

About The Weir Group PLC

Founded in 1871, Weir is one of the world's leading engineering businesses providing mission-critical equipment and aftermarket solutions to energy and natural resources customers in more than 70 countries. The Group, which employs around 14,000 people, comprises three divisions: Minerals; Oil & Gas; and Flow Control, and is headquartered in Glasgow, Scotland, UK. 

Weir's ordinary shares trade on the London Stock Exchange (ticker: WEIR LN) and its American Depositary Receipts trade over-the-counter in the USA (ticker: WEGRY).

This information includes 'forward-looking statements'.  All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding The Weir Group PLC's ("the Company") financial position, business strategy, plans (including development plans and objectives relating to the Company's products and services) and objectives of management for future operations, are forward-looking statements.  These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning.  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future.  These forward-looking statements speak only as at the date of this document.  The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.  Past business and financial performance cannot be relied on as an indication of future performance. 

 

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