Engineer Weir Group boosts outlook as miners invest in sustainable tech

Engineer Weir Group boosts outlook as miners invest in sustainable tech

  • Weir Group reported revenue from continuing operations grew by 16%
  • Trading benefited from ‘strong demand’ for the firm’s mining equipment
  • The Glasgow-based company’s statutory profits jumped by 37% to £126m

Weir Group has lifted its annual guidance as the engineering giant’s sales are boosted by mining clients investing in sustainable technology. 

The Glasgow-based manufacturer posted a record order book and revenues from continuing operations growth of 16 per cent at constant currency levels to £1.3billion for the six months ending June.

Weir told investors it had benefited from ‘strong demand’ for its mining equipment for use in brownfield expansion and sustainability projects.

Upbeat performance: Weir Group’s trading benefited from ‘strong demand’ for the company’s mining equipment for use in brownfield expansion and sustainability projects

Sales in the group’s minerals segment were further supported by price rises made the previous year, ‘particularly high’ growth in North America, and the delivery of its record opening order book, it added. 

But Weir’s ESCO division, which it bought five years ago, saw strong activity in the mining industry offset by lower orders from infrastructure customers due partly to a strong comparative prior year performance.

Statutory profits still jumped by 37 per cent to £126million, and the firm has hiked dividends by almost a third to 17.8 pence per share.

Consequently, it now anticipates full-year operating profits to be towards the top end of the £428million to £464milion range forecast by analysts.

Revenues are also set to be at the high end of forecasts, while operating margins are on track to hit the company’s 17 per cent target. 

Weir Group shares topped the blue-chip index, with a 4.8 per cent, or 88p, rise to £19.23, on Tuesday morning. Their value has grown by around 15 per cent in the past year.

Looking ahead, the business said it was poised to benefit from the long-term need to decarbonise, which it expects to drive  demand for certain metals mined by its clients.

Copper is among those critical elements, given its use in green technologies, such as solar panels, wind turbines and rechargeable batteries.

Jon Stanton, chief executive of Weir, said: ‘Our customers’ focus on more sustainable extraction and processing techniques necessitates the adoption of new technologies.

‘Weir’s engineering capability, leading brands and growing portfolio of sustainable solutions is delivering on this need and enhancing our position as a supplier of mission-critical solutions and services to the mining industry.’

Founded in 1871, Weir supplies equipment ranging from grinders to horizontal slurry pumps, acid valves, clay dredge cutterheads and swaging machines.