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Weir Group expects FY operating profit to be lower than estimates

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Weir Group expects FY operating profit to be lower than estimates

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(Reuters) – Weir Group Plc <WEIR.L>, a maker of pipes and valves for mining and energy industries, said full-year operating profit was expected to be slightly lower than previously anticipated due to higher costs and investments in its mining business. The company expects full-year operating margins in the mining business, its biggest, to be only slightly ahead of the first half due to additional investment, costs associated with reconfiguring operational capacity and some project phasing delays. Weir said orders in the unit were up 12 percent in the third quarter and it expected higher full-year revenue. Total orders surged 21 percent in the third quarter as more oil and gas drilling in North America helped improve equipment pricing. The company said orders in the oil and gas business rose 59 percent and it expected a “material” increase in full-year constant currency divisional revenues and low double-digit operating margins. The company also said it expected to report higher full-year revenue and profit on a constant currency basis.

(Reporting by Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri)
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