Weir Group Regulatory News (WEIR)

18 Jan 2006 07:00

Weir Group PLC18 January 2006 18 January 2006 THE WEIR GROUP PLC TRADING UPDATE The Weir Group PLC issues a trading update in advance of its preliminaryannouncement for the 12 months ending 30 December 2005 due to be published on 21March 2006. Overall, on a like for like basis, turnover from continuing operations for thesecond half of the year will be more than 10% above the same period last yearand all divisions reported second half profits ahead of those achieved in thefirst half. Profit before tax, restructuring costs and discontinued operationsfor the 12 months ended 30 December 2005, will be ahead of last year and towardsthe upper end of Reuters market estimates. (See Footnote.) Cash generation remains healthy despite the effects of cash restructuring costs,share buy back and increased working capital employed to support the strongerorder book. Divisional Trading Comment Engineering Products In our Engineering Products Division we achieved good levels of growth in orderinput, sales and profits when compared to 2004. The Minerals businesses, as anticipated, continue to benefit from buoyant marketconditions and were major contributors to a strong second half financialperformance for the Engineering Products Division. The Clear Liquid businesses achieved good levels of order input in the secondhalf of the year. The results from Gabbioneta in the final quarter, and theongoing restructuring of the Weir Pumps business both contributed to the secondhalf improvement in the profitability of the Engineering Products Division. All Valves & Controls businesses delivered an improved performance in the secondhalf of the year. The restructuring of the UK operation is nearing completionand the early benefits are reflected in the last quarter figures. Engineering Services The Services Division delivered improved progress in turnover in the second halfwith profits slightly ahead of those achieved in the first half of the year. Thedivision has continued to fund investments for its future growth in its coremarkets. Defence, Nuclear & Gas The Defence, Nuclear and Gas Division continued to make progress in the secondhalf of the year with stronger sales and margins from both operations. Acontinued good level of enquiries, coupled with higher levels of sales, willfurther improve conditions in 2006. Outlook for 2006 The strong level of input growth in 2005 and strength of the year-end order bookis expected to translate to higher sales across all divisions in the first halfof 2006. Restructuring benefits will be evident in the improved marginperformance from the UK Valves & Clear businesses, while the addition ofGabbioneta will also contribute to further progress against 2005. Footnote: The profit range of analysts forecasts on Reuters Knowledge Consensus at 9 January 2006 was £57.50 m to £62.00 m with consensus at £59.50m. Contact details: The Weir Group PLCMark Selway, Chief Executive Tel. 0141 637 7111 (switchboard);Helen Walker, Public Relations Manager (Mobile: 07789 032296) The Maitland Consultancy Tel. 020 7379 5151Suzanne Bartch This information is provided by RNS The company news service from the London Stock Exchange