Weir in mining boost as it logs record revenue

PUMP-maker Weir Group yesterday posted record profits, flattered by a robust performance in its minerals division.

Full-year pre-tax profit was logged at £443m, up 12 per cent year on year, supported by strong demand for its pumps from mining companies, particularly from copper and gold projects in South America and Africa.

Revenues climbed 11 per cent over the year to £2.54bn.

Operating profit from the minerals division, which provides pumps to the mining and oil sands industry, were 21 per cent higher over the year at £256m.

The less bright spot came from Weir’s oil and gas unit, which saw operating profit fall 12 per cent, hurt by a challenging North American market.

Chief executive Keith Cochrane told City A.M. that emerging markets would be a big focus for the FTSE firm going forward. Last year, emerging market revenues increased by 23 per cent, with the proportion of total sales from developing markets increasing to 37 per cent.

On the back of record profits, Weir yesterday proposed a dividend hike of 15.2 per cent, with a final payment of 30p for the year.

Shares in the FTSE 100 firm climbed 7.3 per cent yesterday to close at 2,322p, making it the biggest riser on the blue chip index.