- Strong constant currency growth in 2014: results in line with expectations.
- 14% increase in aftermarket orders and revenues. Aftermarket 67% of orders, up from 64% last year.
- Innovation: New products driving growth;
- Comminution and premium fluid end input of £105m;
- R&D up 15%.
- Collaboration: Second global customer agreement secured with major mining house.
- Value Chain Excellence:
- £46m in procurement savings achieved in 2014;
- £35m savings programme announced in November, will deliver £20m of savings in 2015;
- Additional Oil & Gas measures: in total 22% reduction in the division's North American workforce.
- Global Capability: Trio acquisition strengthening presence in Chinese mining markets and US aggregates.
- Total exceptional costs of £212m: Primarily in relation to £49m of efficiency review costs and the non-cash £160m oil price driven impairment of Pressure Control goodwill.
| Continuing Operations | 2014 | 2013 | Reported Growth |
Constant Currency1 |
| Order input | £2,473m | £2,274m | - | +9% |
| Revenue | £2,438m | £2,430m | 0% | +9% |
| Operating profit | £450m | £467m | -4% | +5% |
| Operating margin | 18.4% | 19.2% | -80bps | -70bps |
| Profit before tax | £409m | £418m | -2% | +7% |
| Cash from operations | £421m | £474m | -11% | - |
| Earnings per share | 141.3p | 145.4p | -3% | - |
| Dividend per share | 44.0p | 42.0p | +5% | - |
| Return on Capital Employed3 | 18.1% | 17.5% | - | +60bps |
| Net debt | £861m | £747m | -£114m | - |
Keith Cochrane, Chief Executive, commented:
"2014 demonstrated the strength of Weir's strategy and aftermarket-focused business model as we captured good growth opportunities in fast changing markets. Significant progress was made in developing new products, working in partnership with customers, expanding into new markets through the acquisition of Trio, and streamlining our operations to maintain cost competitiveness."
"In terms of outlook for 2015, we will continue to make progress in delivering our strategy while responding to market conditions as they evolve. The Group has already acted following steep price declines in key commodities, particularly oil, taking additional measures to reduce operating costs."
"While visibility in oil and gas remains limited, it is clear that the Group's strategic progress and cost initiatives will only partly offset the impact of a substantial reduction in demand and the associated pricing pressure. As a result we are planning for a significant reduction in constant currency Group revenues and lower operating margins in 2015. However, we will continue to invest in extending the Group's global leadership positions and increasing market share, supported by a strong balance sheet and the cash generative nature of the Group."
