Weir Group increases 2012 full year dividend by 15%

DividendMax Ltd.

Weir Group increases 2012 full year dividend by 15%

HIGHLIGHTS

  • Record pre-tax profits up 12% to £443m; 

  • Record Group operating margin, supported by strong performance by Minerals; 

  • Strengthening aftermarket input: 57% of total orders (2011: 52%); 

  • Resilient Oil & Gas performance, supported by positive contributions from acquisitions; 

  • Strategic progress: higher R & D investment; expanded product portfolio and service presence; 

  • Full year dividend increased by 15% to 38.0p with further double digit increase planned in 2013. 

Keith Cochrane, Chief Executive, commented:
"Weir delivered a strong performance for shareholders in 2012 despite challenging pressure pumping markets. We responded rapidly to changing market conditions, realigned capacity, reduced costs in affected areas and continued to maximise operational and cost efficiencies.  This allowed us to deliver 2012 results in line with our mid-year expectations. We continued to invest in the Group's capabilities, underpinning our strategy to grow ahead of our end markets.

Looking ahead into 2013, despite more challenging markets, the Group will continue to deliver profitable growth through new product introductions and a range of operational initiatives. Assuming a gradual economic and end market improvement, we expect to deliver low single digit revenue growth and broadly stable margins in 2013 with lower first half profits offset by growth in the second half. Alongside substantially higher cash generation, the Group plans the eighth consecutive year of double digit dividend growth."

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