Weir Group PLC
20 January 2005
20 January 2005
THE WEIR GROUP PLC
TRADING UPDATE
The Weir Group PLC issues a trading update in advance of its preliminary
announcement for the 12 months ended 31 December 2004 due to be published on 21
March 2005.
Overall, on a like for like basis, turnover for the second half of the year will
be more than 10% above the same period last year. Profit before tax, goodwill
and exceptional items for the 12 months ended 31 December 2004, will be ahead of
last year and broadly in line with recent market estimates (see note 1 below).
Cash generation remains healthy despite the effects of exchange rate movements
and, at the year end, the business was in net funds.
Divisional Trading Comment
The Minerals Division is experiencing buoyant market conditions delivering sales
and profit growth in line with expectations for the full year.
The Services Division delivered the anticipated progress in turnover while
continuing to fund investment for future growth.
The Clear Liquid Division delivered good levels of order input in the second
half of the year. Increased second half sales and a higher year end order book
are expected to deliver further progress in 2005.
The Valves & Controls Division continued to grow its input and will achieve
sales growth when compared to 2003. In the UK, we are undertaking a strategic
review to address the issues which were outlined in the first half and which
have continued to a similar extent into the second half of the year. A further
update will be given in March. The US and French businesses continue to make
progress and their primary power markets are showing early signs of growth.
Techna made progress in the second half of the year, despite some slippage in
new project work. A continued good level of enquiries, coupled with higher level
of sales will further improve conditions in 2005.
Outlook for 2005
The strong level of input growth in 2004 is expected to translate to higher
sales across all divisions in the first half of 2005.
Note 1:
The average of market estimates for profit before tax, goodwill and exceptional
items for 2004, based on estimates published in the last three months by the
houses listed below, is £58.5m:
Arden Partners, UBS, Williams deBroe, DrKW, Deutsche Bank, Rowan Dartington
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
Angus Maitland/Michelle Jeffery (Mobile: 0798 9977837)
This information is provided by RNS
The company news service from the London Stock Exchange
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