Shares of Glasgow-based engineering giant Weir Group fell about 7% on Thursday after it warned in an update on North American oil and gas market conditions of “a considerable softening in demand for original equipment and some order book delivery deferrals.”
In a stock exchange statement, Weir said: “Over the next two days The Weir Group is undertaking its usual investor roadshow in London to discuss its half year results and strategic progress post the completion of the ESCO acquisition.
“Given updates from oil and gas industry peers in recent days the company expects to discuss current North American oil and gas market conditions.
“Those market conditions were in line with management expectations through to mid-August.
“In the last two weeks of August activity levels supporting our oil & gas aftermarket business remained as expected, albeit with initial signs of pricing pressure.
“However, there was a considerable softening in demand for original equipment and some order book delivery deferrals.
“No further information on current trading will be provided.”
Weir Group employs 18,000 people in 70 countries and has a stock market value of about £4.6 billion.
In July, Weir Group completed the acquisition of Portland, Oregon-based ESCO Corporation for an estimated enterprise value of $1.28 billion.