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The Weir Group PLC today issues the following interim management statement in respect of the 13 weeks ending 31 March 2008.

The Group’s financial performance remained strong with growth in input¹ and revenue¹ in the first quarter reflecting continued buoyant market conditions across the mining, oil & gas and power sectors.

The ongoing strength of the Group’s end markets, combined with the addition of SPM, has resulted in improved operating margins when compared with the same period in 2007.

Material Events and Transactions
On 18 March 2008, the Group completed the acquisition of CH Warman Pump Group, a specialist pump business serving the mining and minerals processing industry throughout Africa, for a cash consideration of US$231m (£113m).

On 21 April 2008, the Group completed the disposal of Weir Strachan & Henshaw for £65m which will be classified as a discontinued operation in this year’s results.

Financial position
Net debt at 31 March 2008 was higher than the position at 28 December 2007, primarily as a result of the acquisition of CH Warman. During April, the Group received cash proceeds of £65m from the disposal of Weir Strachan & Henshaw which will be used to continue to develop Weir’s activities in specialist higher margin businesses in the oil & gas, mining and power & industrial sectors.

Outlook
The Group’s strong start to the year increases the Board’s confidence in achieving profit before tax from continuing operations, as outlined in our preliminary results announcement on 11 March 2008, of £140m (after intangibles amortisation).


Footnote:
1. Input and revenue growth refers to the like for like comparison of current year results to the equivalent prior year period for those businesses that have been part of the Group throughout the current and prior year reporting period, on a constant currency basis.

For further information please contact

Helen Walker
Group PR Manager
Tel: 0141 637 7111
Fax: 0141 637 2221
Email Helen.walker@weir.co.uk