THE WEIR GROUP PLC INTERIM MANAGEMENT STATEMENT for the period to 2 November 2012
SET TO DELIVER DOUBLE DIGIT PROFIT GROWTH IN 2012
The Group's global presence and diverse end market exposure, together with targeted cost reductions, ensure it is on track to deliver full year 2012 profit before tax, amortisation and exceptional items in the range of £440m-£450m, within the range of our expectations in July and in line with current market consensus. Conditions remained mixed across the Group's end markets, impacted by increasing global macro-economic uncertainty and resultant declines in certain commodity prices.
As anticipated, revenue and profit growth moderated in the third quarter as a result of the lower opening order book and reduced activity levels at SPM and Mesa. Group revenue and profits were ahead of the prior year quarter, benefiting from the impact of prior year acquisitions which continue to perform satisfactorily. Group operating margins for the quarter were in line with both the prior year period and our expectations.
Reported order input for the Group in the third quarter was 8% down on the prior year and 15% lower on a like for like basis. As a result, reported order input for the 39 weeks increased by 2% (H1: up 8%) against the prior year period. On a like for like basis for the 39 weeks order input was 6% lower (H1: down 1%) with original equipment orders down 18% (H1: down 13%) and aftermarket orders up 6% (H1: up 11%).
