The Weir Group PLC: Update on disposal programm...

The Weir Group PLC (the "Group") announces the disposal of two renewables focused operations, American Hydro Corporation and Ynfiniti Engineering Services, for a combined initial consideration of £34.4m¹, increasing to £36.7m subject to certain conditions being satisfied. Both disposals are expected to complete by 30 June 2016.

These businesses, which were part of the Flow Control division, generated combined revenues of £38.0m and £1.4m of operating profit in 2015². The Group will record a loss on disposal of approximately £5.0m. The disposals are part of the Group's on-going £100m asset disposal programme which is progressing to plan.

On a constant currency basis, net debt at the end of June will be lower than previous guidance as a result of the disposal proceeds and the scrip dividend uptake. 

The Group notes that trading in April and May was consistent with the trends seen in Q1 and in-line with expectations.  Orders for the five months to the end of May were 15% below the prior year period (Q1: 21% lower) with orders and revenues in April and May slightly lower than the prior year.  As a result, the Group remains on track to meet its prior guidance for first half profits, ahead of current market expectations³. Underlying cash generation remains robust.  There is no change to the Group's prior full-year guidance as outlined on 28 April 2016.

The Group will update the market on its full year expectations at its interim results, which will be announced on 28 July 2016.

Notes:

1. Exchange rate of £1=$1.469 and £1=€1.302.
2. At 2015 average exchange rates.
3. Company compiled publicly available consensus for the first half 2016 PBTA (before amortisation and exceptionals) is £74m and disclosed at www.global.weir/investors/shareholder-information/analysts-consensus .

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

Appendix 1 - pro forma 2015¹ excluding disposals (constant currency)

Group (Continuing Operations²)

Constant currency £m	H13	H2	2015
Input OE	286	273	559
Input aftermarket	714	572	1,286
Input Total	1,000	845	1,845
Revenue OE	266	308	574
Revenue aftermarket	696	610	1,306
Revenue Total	962	918	1,880
Operating profit4	127	131	258
Operating margin4	13.1%	14.4%	13.7%
Book-to-bill	1.04	0.92	0.98

Flow Control (Continuing operations²)

Constant currency £m	H13	H2	2015
Input OE	95	87	182
Input aftermarket	90	61	151
Input Total	185	148	333
Revenue OE	82	111	193
Revenue aftermarket	70	75	145
Revenue Total	152	186	338
Operating profit4	13	20	33
Operating margin4	7.5%	11.2%	9.5%
Book-to-bill	1.22	0.79	0.98

Notes: 1The pro forma figures above have not been audited 2Continuing operations excludes American Hydro Corporation and Ynfiniti Engineering Services 32015 H1 restated at 2015 average exchange rates. 4Adjusted to exclude exceptional items and intangibles amortisation.

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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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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: The Weir Group PLC via Globenewswire

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