Weir Group warns on slowing growth but confirms targets

ENGINEERING firm Weir Group yesterday said orders fell in the third quarter, although it confirmed its full year profit guidance.

Revenue and profit growth at the Glasgow-based pumps and valves maker edged down over the third quarter, largely due to a reduced order book, Weir said.

Orders for the group fell eight per cent in the three months to September, thanks to lower US and Canadian drilling. Despite this, it said it was on track to hit full-year pre-tax profits of between £440m and £450m.

Trading conditions remained “mixed” across Weir’s core markets, impacted by economic uncertainty and falls in commodity prices.

Orders in its oil and gas division were particularly hurt, and fell 28 per cent over the period. Weir said full-year upstream revenues are forecast to be $800m (£501m), in the middle of previous expectations.

Engineering analyst Scott Cagehin at Numis Securities said yesterday that Weir’s long-term growth prospects are strong, and driven by “both structural end market demand and organic initiatives”, adding that the firm is a “high-quality business with leading market positions”.