Weir orders to pump up profits
A booming aftermarket and a burgeoning order book for original equipment enabled The Weir Group to issue an upbeat trading update today (14 June). And in a separate statement, the pump specialist announced the acquisition of Malaysia-based Linatex for $200 million (£138m).
Weir said that recent trading had been stronger than expected, especially at its oil and gas and its minerals divisions. Aftermarket orders had continued to exceed expectations and a positive trend was starting to emerge in original equipment orders. Order input for the first 22 weeks of the year was up 25% on the same period last year with aftermarket orders up 24%.
The company said these trends, together with a positive benefit from foreign exchange translation, meant that it now expected profits for the half year ending 2 July to be around £140 million and for profits for the second half of 2010 to be significantly ahead of profit for the second half of 2009.
