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9 Oct 2008 07:00
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9 October 2008
THE WEIR GROUP PLC
INTERIM MANAGEMENT STATEMENT
The Weir Group PLC today issues the following interim management statement in respect of the 13Β weeks ending 26 September 2008.Β
During the third quarter, the Group has continued to perform strongly, with good growth in input, revenue and profit, on a constant currency basis,Β reflecting ongoing demand for our products across the mining, oil & gas and power sectors, and the impact of recent acquisitions.Β
The Group's results also benefited from a positive foreign currency translation effect in the period, most notably from the strengthening of the US dollar against sterling.Β
Material Events and Transactions
On 4 July 2008, the Group acquired a 75% shareholding in Standard Oilfield Services, an oilfield services business based inΒ Baku,Β AzerbaijanΒ for a cash consideration of approximately US$16m (Β£8m).Β
On 29 August 2008 the Group disposed of its Canadian distribution business for a cash consideration of C$25.4m (Β£13.2m).
Last week,Β the Group disposed of the Weir Materials & Foundries operationsΒ inΒ ManchesterΒ for a total consideration of Β£10m.
Financial Position
Net debt at 26 September 2008 wasΒ lowerΒ than at 27 June 2008:Β Β£261.7m,Β benefiting from operating cashflow generation and proceeds from the sale of the Canadian distribution business, partially offset by the purchase of Standard Oilfield Services in July and an adverse foreign currency translation effect in the period.
AΒ total ofΒ Β£625m of committed revolving creditΒ facilities,Β expiring 2011, hasΒ now been signed providing further financial headroom to support the future growth of the Group.
Outlook
The Group's continued strong performance in the year to date andΒ theΒ foreign currency translation benefits outlined above increases the Board's confidence in the full year outlook and we expectΒ anΒ increaseΒ inΒ profit from continuing operations before tax, intangibles amortisation and exceptional itemsΒ toΒ around Β£170m1.
Notes:Β
Group guidance forΒ continuing operations profit before tax, intangibles amortisation and exceptional items atΒ 12Β AugustΒ 2008Β was Β£165.4m.
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Contact details: The Weir Group PLC |
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Mark Selway, Chief Executive |
Tel. 0141 637 7111 (switchboard); |
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Helen Walker, Public Relations Manager |
Tel. 0141 308 3739 (Mobile: 07789 032296) |
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MaitlandΒ |
Tel. 020 7379 5151 |
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Suzanne Bartch |
(Mobile: 07769 710 335) |
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