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Weir scraps dividend as orders fall 13% in first quarter

By BFN News | 07:23 AM | Tuesday 28 April, 2020


Engineering company Weir scrapped its 2019 final dividend and said its orders fell 13% in the 2020 first quarter as a the collapse in oil prices hurt its oil and gas division. The company, however, said it was benefiting from resilience of aftermarket-focused mining businesses, which comprised 80% of its total orders. Weir said it was also curtailing capital expenditure and suspending its annual bonus for management to help conserve cash. 'After a resilient first quarter, we expect Covid-19 to have a greater impact in the second quarter,' Weir said. 'Given the uncertain environment no specific guidance is provided for the remainder of the year, although we will update as and when visibility improves.' Weir also said that it was currently undertaking a refinancing of its $950m revolving credit facility, as part of a normal schedule. 'These discussions are ongoing and are expected to conclude during the second quarter,' the company said. Story provided by StockMarketWire.com

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