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The Markets
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The Markets
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Manufacturing & engineering

Weir Group shares fall as first half results fail to excite after bullish trading update earlier this month

For the first-half, Weir reported 26% growth in revenue to US$1,091bn, although at constant currency that growth was reduced to 10%

Weir Group PLC (LON:WEIR) saw its shares fall this morning after the pumps manufacturer’s first half results failed to add anything new to a bullish trading update delivered just 10 days ago.

Back on July 17, the FTSE 250-listed firm raised its full-year guidance as it flagged up an accelerated recovery in the Northern American oil and gas markets.

READ: Weir Group up as pumps firm raises full-year guidance

With its interim results for the six months to June 30, posted today, Weir simply reiterated that assertion.

Jon Stanton, the firm’s chief executive officer, said: “Looking to the rest of the year and assuming supportive commodity prices, expectations for our Oil & Gas division were recently upgraded, while guidance for our Minerals division remains unchanged.”

He added: “Overall, the Group expects to deliver strong constant currency revenue and profit growth, with good cash generation and substantial de-leveraging."

For the first-half, Weir reported 26% growth in revenue to US$1,091bn, although at constant currency that growth was reduced to 10%.

Meanwhile the firm’s reported pretax profits rose by 12% to £92mln, although at constant currency that became an 8% decline, with its operating margin reduced to 10.3% from 11.9%.

Weir maintained its interim dividend at 15p per share.

In mid morning trade, Weir shares were down 3.6%, or 69p at 1,846p, having jumped nearly 10% after the update earlier this month.

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