Weir Group Issues Profit Warning Despite Rise In Oil And Gas Orders

Weir Group has issued a profit warning despite recording a 56% increase in oil and gas orders between July and September this year.

While third quarter group orders rose 21% and minerals orders also increased 12%, the company stated operating profits are "expected to be slightly lower than previously indicated as a result of Minerals project phasing, investment in growth and one-off plant reconfiguration costs".

Chief Executive Jon Stanton said while Minerals profits are expected to be slightly lower than previously indicated, expectations for Oil & Gas and Flow Control are unchanged.


"In 2017 we continue to build on our leadership positions in rapidly improving main markets whilst investing to maximise the significant opportunities ahead of us," he said.

"As the North American onshore oil and gas industry continues to demonstrate its increased relevance as a source of global supply, our Oil & Gas business is fully leveraging its market leadership position in support of higher activity levels among customers. While international markets remained challenging the division has accelerated in 2017 as we expected and is well placed to continue to fully capture future opportunities.

"In Minerals our brownfield solutions delivered good order growth with an increasing pipeline of future opportunities. Profits will be slightly lower than previously indicated due to project phasing, incremental investment in growth and one-off plant reconfiguration as we ensure the business is well set to benefit from increased momentum in 2018 and beyond."

(LM)