Weir Share Chat (WEIR)

0628 GMT [Dow Jones] Nomura initiates Weir Group (WEIR.LN) at reduce with a 1350p target. Says it expects Weir's FY 2012 revenues of its oil and gas division to fall 6% against consensus of 0% as it expects oil and gas Original Equipment volumes to fall 20%, causing 60 basis points of price pressure. Adds it expects service to slow from around 40% per annum in FY2010-2011 to 7% in FY2012 and 4% in FY2013. Nomura's estimated FY 2012 oil and gas margin is seen declining 130 basis points (against consensus for an increase of 90 basis points). Shares closed Tuesday at 1502p. (nina.bains@dowjones.com)

There seems to be a huge difference in share price from this time last year, is there low expectations for the interim results on 31st July? I understand analysts aren't expecting massive growth but does that warrant a 25% lesser market cap?
Or is it something else like caught up in a technical **** storm?

INVESTORS added £140 million to the stock market worth of Weir Group after the Glasgow engineer issued what an analyst reckoned amounted to an earnings upgrade.

Ahead of briefings with analysts yesterday Weir said it intended to re-confirm the guidance for its full year results which the company issued in May.

The group said then it had enjoyed a strong performance during the first quarter and continued to expect a year of "further good progress" in line with previous guidance.

However, investors were rattled by news in last month's interim management statement that order input in the key oil and gas division fell 26% on a like-for-like basis in the quarter. Weir noted then there was uncertainty about the market for pumps used in fracking for gas, following falls in the price of the commodity.

Yesterday, the company highlighted a strong performance by its minerals division.

The company told investors: "The minerals management team will highlight the market leadership positions in the division's core markets; its broadening and differentiated product and service offerings, and product innovation; and a number of future growth opportunities which are well developed."

Weir said the company's success in winning £1 billion orders for new equipment since January 2010 underpinned the division's ambition of doubling divisional 2011 operating profits by 2016.

Harry Phillips at Oriel Securities said: "They've put in a very punchy growth target for their minerals business which is in our view more than just a reiteration of guidance for the current year. It's a surprisingly up-tempo target they've set."

The update may help to offset concerns about the outlook for Weir generated by last month's IMS. The shares closed 66p firmer at 1503p.

http://www.heraldscotland.com/business/company-news/investors-add-140m-amid-weirs-earnings-upgrade.17917878

It is the minerals division that the firm will be trumpeting today to shareholders in a presentation designed to give them reassurance about the health of the company.

Executive will seek to highlight the market leadership positions in the division's core markets; its broadening and differentiated product and service offerings, and product innovation; and a number of future growth opportunities which are well developed.

"This is supported by the £1.1bn original equipment input Weir has captured since January 2010 which, as the equipment is commissioned, is expected to generate an incremental aftermarket revenue opportunity of up to £3bn over the next ten to fifteen years, underpinning the division's ambition of doubling divisional 2011 operating profits by 2016," they will say.

Shares in Weir Group rallied on Tuesday after the company reconfirmed its full year guidance.

The firm's owners have been shares lose a third of their value since February, dropping from around £22 four months ago to £15 now.

The news that business was on track pushed them back up 5% on Tuesday morning to 1,515p.

In May the engineering giant said order input fell 26% on a like-for-like basis in its oil and gas division, which the firm put down to rapid changes in the pressure pumping market.

It said it now expected full year revenues from its SPM and Mesa businesses to be slightly lower than 2011 and below prior guidance.

However, Weir added that order input in its minerals division was up 18% compared to the previous year and ahead of its expectations

Weir Group PLC
Capital Markets Presentation
THE WEIR GROUP PLC
19 June 2012
Capital Markets Presentation
The Weir Group will today hold a Capital Markets presentation for shareholders and analysts in London which will focus on the Minerals Division, providing an overview of its operations, market positioning and strong medium term outlook. Weir will also reconfirm its full year guidance for the Group overall as communicated in the Interim Management Statement of 9 May 2012.
The Minerals management team will highlight the market leadership positions in the division's core markets; its broadening and differentiated product and service offerings, and product innovation; and a number of future growth opportunities which are well developed. The division's growing installed equipment base provides the platform for profitable, high quality, aftermarket revenue growth, from both products and services. This is supported by the £1.1bn original equipment input Weir has captured since January 2010 which, as the equipment is commissioned, is expected to generate an incremental aftermarket revenue opportunity of up to £3bn over the next ten to fifteen years, underpinning the Division's ambition of doubling divisional 2011 operating profits by 2016.
Keith Cochrane, Chief Executive, will conclude the presentation by highlighting the positive fundamentals underpinning the medium and long term outlook for the mining equipment market.
A webcast of the presentation will be available on the Group's website (http://www.weir.co.uk) from 8pm on the 19th June.

Weir Group PLC
Director/PDMR Shareholding
THE WEIR GROUP PLC
18 June 2012
Notification of Directors shareholding
The Weir Group PLC ("the Company") announces that on 18 June 2012 Mr John Mogford, one of its independent non-executive directors, purchased 3,500 ordinary shares at a purchase price of 1454p per share. These shares will be held beneficially in his HSBC trading account. Mr Mogford as a consequence of this transaction now holds a total of 11,481 shares, representing 0.005% of the Company's issued share capital.

Jefferies has reiterated its 'buy' recommendation and 2,185p target price for engineering giant Weir Group, saying that consensus upgrades are in order following Tuesday's Capital Markets Day.

In a brief statement that highlight the presentations given to investors, Weir reconfirmed its full-year guidance. Jefferies said that this implies a pre-tax profit of £470m, which would see Bloomberg consensus figures raised by 4%. "This will be taken well by the market, as a lot of bad news is priced in at the moment." said analyst Andy Douglas.

Shale-gas biz = 9% of total profits, share price drop 20% - must be better targets for shorters!

Anyone with me?