Information  X 
Enter a valid email address

Weir Group PLC (WEIR)

  Print      Mail a friend       Annual reports

Thursday 18 January, 2007

Weir Group PLC

Trading Statement

Weir Group PLC
18 January 2007


                                                                 18 January 2007

                             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 29 December 2006 due to be published on 21
March 2007.


In the second half, the Group continued to benefit from generally strong market
conditions, the restructuring undertaken in 2005 and the impact of recent
acquisitions.


We expect profit before tax and exceptional items for the full year to be
substantially ahead of 2005 and at the upper end of current Reuters market
estimates. Revenue growth in the second half is expected to be around 15%
resulting in growth for the year of around 19%.


As a result of an ongoing focus on working capital management, cash generation
has been strong which should result in a further reduction in net debt compared
to that reported at the time of the interims.


In addition, net exceptional gains of around £15.5m are expected to be
recognised for the year following the completion of the sale of the
Huddersfield site of Weir Valves & Controls UK and agreed changes to the Group's
UK pension arrangements which will reduce the pension fund deficit.


Divisional Trading Comment

Engineering Products

In the second half, our Engineering Products Division continued to achieve good
levels of growth in order input, sales and profits leading to further
improvement in underlying operating margins when compared to 2005.


The division benefited from restructuring undertaken in 2005 and the full year
effect of the acquisition of Gabbioneta.


Engineering Services

As anticipated, revenues in the second half are expected to be marginally down
when compared to 2005. While underlying profitability and operating margins
improved, reported operating results are expected to be down on 2005 due to
additional once off restructuring costs in the Middle East, USA and UK.


Defence, Nuclear & Gas

The Defence, Nuclear and Gas Division continued to make progress with second
half revenues and operating profits ahead of last year.


Outlook for 2007

The continuing level of input growth in 2006 and strength of the year-end order
book are expected to translate to further progress across all divisions in 2007.


Footnote:

The pre-tax profit (before exceptionals) range of analysts' forecasts on Reuters
Knowledge Consensus at 9 January 2007 was £74.60 m to £86.70 m with consensus at
£82.70m.







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

Note to Editors: Print quality images are available to download at 
http://www.newscast.



                      This information is provided by RNS
            The company news service from the London Stock Exchange