- 10% order growth year on year and 9% up on H2-2013
- Positive aftermarket momentum across the Group: 15% order input growth
- Strong growth in upstream Oil & Gas: divisional input up 40% year on year
- Adverse foreign currency exchange rate movements: £23m (11%) operating profit impact
- Mining market remains challenging, margins impacted by industrial action in South Africa
- New products performing well: £51m input from HPGRs and premium fluid ends
- Dividend rephased: Interim up 70% to represent approximately one-third of full year dividend
Keith Cochrane, Chief Executive, commented:
"Weir has delivered a good underlying first half performance in line with expectations. The benefits of our diverse portfolio were evident as the impacts of previously identified downside and upside risks offset each other. Double digit growth in Oil & Gas was partially offset by challenging mining end market conditions and the impacts of prolonged industrial action in South Africa. Value Chain Excellence initiatives continued to make progress, leveraging Weir's global scale to deliver significant savings.
"We anticipate strong revenue and profit growth in the second half of 2014, assuming no further deterioration or disruption in mining end markets. As a result we remain on track to meet our full year expectations of good constant currency revenue and profit growth with Group margins broadly in line with 2013 levels. Reported results will continue to be affected by foreign currency headwinds, which strengthened over the first half."
