Weir lifts profit guidance after US drilling success

City A.M. Reporter
British engineer Weir aid it expected 2011 pre-tax profit to be £20m higher than previously guided after strong demand for valves and pumps from oil and gas customers in the first quarter.

Weir, which also supplies parts to customers in the mining and power generation market, said on Wednesday that orders in the first three months of the year rose 30 per cent on a like-for-like basis, giving it confidence for 2011.

The company said orders from oil and gas customers in the first quarter jumped 129 per cent, boosted by an increase in activity in drilling for oil and gas in rock shales in North America.

Shares in Weir, which have gained 9 per cent in the last month, closed at 1,934 pence on Tuesday, valuing the company at £4.1bn.