Weir Group Regulatory News (WEIR)

9 Oct 2008 07:00



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 13 weeks ending 26 September 2008. 

During the third quarter, the Group has continued to perform strongly, with good growth in input, revenue and profit, on a constant currency basis, reflecting ongoing demand for our products across the mining, oil & gas and power sectors, and the impact of recent acquisitions. 

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. 

Material Events and Transactions

On 4 July 2008, the Group acquired a 75% shareholding in Standard Oilfield Services, an oilfield services business based in Baku, Azerbaijan for a cash consideration of approximately US$16m (£8m). 

On 29 August 2008 the Group disposed of its Canadian distribution business for a cash consideration of C$25.4m (£13.2m).

Last week, the Group disposed of the Weir Materials & Foundries operations in Manchester for a total consideration of £10m.

Financial Position

Net debt at 26 September 2008 was lower than at 27 June 2008: £261.7m, 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.

A total of £625m of committed revolving credit facilities, expiring 2011, has 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 and the foreign currency translation benefits outlined above increases the Board's confidence in the full year outlook and we expect an increase in profit from continuing operations before tax, intangibles amortisation and exceptional items to around £170m1.

Notes: 

Group guidance for continuing operations profit before tax, intangibles amortisation and exceptional items at 12 August 2008 was £165.4m.