The Weir Group PLC today issues the following interim management
statement in respect of the 13 weeks ending 26 September 2008.
During the third quarter, the Group has continued to perform
strongly, with good growth in input, revenue and profit, on a
constant currency basis, reflecting ongoing demand for our products
across the mining, oil & gas and power sectors, and the impact
of recent acquisitions.
The Group’s results also benefited from a positive foreign
currency translation effect in the period, most notably from the
strengthening of the US dollar against sterling.
Material Events and Transactions
On 4 July 2008, the Group acquired a 75% shareholding in
Standard Oilfield Services, an oilfield services business based in
Baku, Azerbaijan for a cash consideration of approximately US$16m
(£8m).
On 29 August 2008 the Group disposed of its Canadian
distribution business for a cash consideration of C$25.4m
(£13.2m).
Last week, the Group disposed of the Weir Materials &
Foundries operations in Manchester for a total consideration of
£10m.
Financial Position
Net debt at 26 September 2008 was lower than at 27 June 2008:
£261.7m, benefiting from operating cashflow generation and proceeds
from the sale of the Canadian distribution business, partially
offset by the purchase of Standard Oilfield Services in July and an
adverse foreign currency translation effect in the period.
A total of £625m of committed revolving credit facilities,
expiring 2011, has now been signed providing further financial
headroom to support the future growth of the Group.
Outlook
The Group’s continued strong performance in the year to date and
the foreign currency translation benefits outlined above increases
the Board’s confidence in the full year outlook and we expect an
increase in profit from continuing operations before tax,
intangibles amortisation and exceptional items to around
£170m1.
Notes:
1: Group guidance for continuing operations profit before tax,
intangibles amortisation and exceptional items at 12 August 2008
was £165.4m.
For further information contact:
Frances McCaw
Assistant Company Secretary
The Weir Group PLC
Registered office:
Clydesdale Bank Exchange
20 Waterloo Street
Glasgow
G2 6DB
Tel: 0141 308 3737
