Weir Group raises forecast on mining and oil company demand

Engineering company Weir Group said it expected full-year profits to be slightly ahead of its previous forecast, boosted by higher demand from oil and mining companies for equipment and maintenance.

Weir, a maker of pumps and valves for the mining, oil and gas and power generation industries said on Monday orders for equipment rose 44 per cent in the 39 weeks to the beginning of October, compared to a rise of 28 per cent in the first half of the year.

The company, which joined Britain's FTSE 100 index of companies in September, said its minerals and oil and gas divisions performed strongly in the 39 week period, offsetting a weakness in demand from customers in the power and industrials sector.

Weir said it was confident of a strong order book going into 2011 after a surge in orders from oil and gas companies particularly those active in oil and liquid shale in North America.