(Alliance News) - Weir Group PLC on Thursday said orders in the first quarter of 2024 fell in line with expectations and affirmed that it is on track to meet its full-year guidance.
The London-based speciality chemicals and sustainable technology firm said group orders in the three months to March 31 were up by 1%, and in line with expectations and seasonal trends.
"The diversification Weir has across commodities and geographies meant that issues such as nickel over supply and the mothballing of the Cobre Panama copper mine were more than offset by positives elsewhere," Weir said.
It also explained that this translated into strong demand for its mining spares and expendables during the quarter as a result.
This translated into strong overall demand for mining spares and expendables through the quarter, with order growth in its aftermarket business of 4%.
Looking ahead, Weir said it is executing well and conditions in its mining markets are positive.
"Robust demand for our AM spares and brownfield [original equipment] solutions give us confidence in full year trading in line with expectations for growth in constant currency revenue, profit and operating margin."
Weir added that operating profit in 2024 is expected to be in line with "typical seasonal patterns" and it also expects operating margins to increase year-on-year.
In 2023, operating profit was GBP459 million, and operating margin was 17%.
Chief Executive Officer Jon Stanton said: "I'm pleased with the strength of our performance in the first quarter. We are delivering the technology to enable our customers to address both the demand for critical metals and the transition to more sustainable mining. Our aftermarket growth algorithm delivered as expected, with our significant installed base and diversification across commodities and geographies resilient against mixed commodity prices and increasing geopolitical tensions. With further progress in our performance excellence programme, we are on track to deliver our 2024 guidance of growth in revenues, profits and operating margins. Further ahead the opportunity for Weir to continue to deliver compounding growth and margin expansion is compelling."
Shares in Weir Group were down 0.9% at 1,973.00 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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Weir Group (WEIR)