Weir Group PLC (LSE:WEIR) said it expects to report full-year operating profit towards "the upper end" of analysts' forecast after strong growth in earnings and revenue in the first half.
Shares of the company traded 7.50% higher on the news to 1,599.00p.
Revenue at the engineering company soared 18% at constant currencies to £1.09bn in the six months to 30 June 2022 on the back of positive price and volume growth, while in the second quarter, revenue jumped 20% on a sequential basis.
Adjusted operating profits amounted to £168mln in the first half, a rise of 15% on the same period last year. Statutory pre-tax profit rose to £126mln from £100mln.
The FTSE 250 company is raising its interim dividend to 13.5p from 11.5p given the "high levels of confidence" in its strategy and future prospects.
The consensus forecast range provided by the company for annual group operating profit is £320mln to £386mln.
"We enter the second half of the year with a strong order book and are managing through a complex operating environment successfully. As a result, we continue to expect to deliver strong growth in constant currency revenue and profit this year," said Jon Stanton, chief executive.
The company also announced a business processes programme and said it expects to realise £30mln annualised run-rate savings by 2025, "which will expand operating margins beyond 17%".
In a separate statement, Weir announced that Ricardo Garib is retiring as president of Weir Minerals at the end of 2022, after 43 years' service. He will be succeeded by Andrew Neilson, who is currently president of Weir ESCO.
A process to identify a successor to Neilson as ESCO president is "well advanced", the group said.