Weir H1 revenue tops £1bn, profit up to £143m

Glasgow-based engineering giant Weir Group said on Tuesday its revenue for the the six months to June 30, 2018, rose 15% to £1.062 billion and profit before tax “before exceptional items and intangibles amortisation” increased 38% to £143 million.

Orders rose 20% to £1.166 billion on a constant currency basis “reflecting an increase in activity levels in North American oil and gas markets, coupled with strong growth in minerals.”

Weir recently completed the acquisition of Portland, Oregon-based ESCO Corporation for an estimated enterprise value of $1.28 billion.

Weir’s main markets are mining, energy and infrastructure and the group employs 18,000 people in 70 countries and has a stock market value of roughly £5 billion.

Weir Group CEO Jon Stanton said: “This is a strong set of results with total group operating profits up by more than 60% and all our divisions showing good momentum. 

“It reflects the hard work of our people and the benefits of investing early to take full advantage of positive long term fundamentals in our main markets. 

“With the acquisition of ESCO and decision to sell Flow Control, we began the transformation of Weir into a stronger group focused on leading positions in highly abrasive, aftermarket intensive mining and upstream oil and gas markets. 

Looking to the full year we continue to anticipate strong constant currency revenue and profit growth in addition to further strong cash generation and balance sheet deleveraging. 

“Reflecting confidence in our long term growth outlook the board has approved a 5% increase in the interim dividend.”