(Alliance News) - Weir Group PLC on Thursday posted a record quarter, with group orders on the up, though it expects to see a profit hit as it winds down its operations in Russia.
Group orders in the first quarter of 2022 were up 15% compared to a year ago. The engineering company said it saw a "very strong demand for aftermarket" and "good progress on strategic growth initiatives".
"The group has had an excellent start to the year, generating record orders and executing strongly in a complex global environment," Chief Executive Jon Stanton said.
Without providing figures, Weir added that net debt at the end of March was higher than a quarter ago due to the impact of translational foreign exchange and normal seasonal patterns.
Regarding the suspension of its business with Russia, the company expects up to a GBP20 million hit to underlying operating profit.
"The group's assets in Russia comprise primarily of inventory and receivables and represent about 2% of the group's net assets," Weir said.
As the firm is reviewing if it is possible to recover its assets in the country, it could result in an exceptional write-off during the year, it explained.
Weir expects to deliver "strong growth in constant currency revenue and profit in 2022 and anticipate progress towards our medium-term margin and cash targets," it added.
Meanwhile, on Thursday, Senior Independent Director Barbara Jeremiah will replace Charles Berry as chair of the company. The firm first announced the change in September.
Weir Group shares were 3.6% lower at 1,552.00 pence each in London on Thursday, shortly after midday.
By Tom Budszus; tombudszus@alliancenews.com
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Weir Group (WEIR)