The Weir Group PLC : Interim Management Statement

              The Weir Group PLC : Interim Management Statement

The Weir Group PLC
1 May 2013

                              THE WEIR GROUP PLC
   INTERIM MANAGEMENT STATEMENT for the period 29 December 2012 to 30 April

The Weir Group PLC announces that trading in the period has been resilient and
in line with  expectations. Guidance for  the full year  is unchanged.  Weir 
continues to  expect  low  single  digit revenue  growth  and  broadly  stable 
margins, with lower first  half revenues and margins  offset by growth in  the 
second  half,  supported  by  continued   gradual  economic  and  end   market 

The Group's  first  quarter  performance  was  impacted  by  a  lower  opening 
orderbook, particularly  in the  Oil &  Gas division,  partially offset  by  a 
positive first contribution from recent acquisitions, most notably Mathena. 

As expected, on a  like for like^2  basis, first quarter  input was 14%  lower 
than the prior year comparator but 14% higher than the fourth quarter of 2012,
with good  underlying  sequential  growth  in  the  Minerals  and  Oil  &  Gas 

On a reported basis, order input^3 was down 14% against the prior year period.
Original equipment orders were down 32%  on a reported basis (30% lower  like 
for like) while aftermarket orders were up 2% (1% lower like for like).

First quarter  revenues were  lower  than the  prior  year, primarily  due  to 
materially lower Oil & Gas  original equipment sales. Consequently  operating 
profits were  down on  the prior  year period  with margins  also impacted  by 
one-off costs  in relation  to  the continued  restructuring of  the  pressure 
pumping operations.


Order input for the 13 weeks was down 6% against the prior year period and  in 
line with our expectations. Original equipment  input was 23% lower than  the 
prior year period, when a number of large project orders were received,  while 
aftermarket input was up 6%. On a  sequential basis, like for like input  was 
20% higher than the fourth quarter of 2012, supported by a number of  original 
equipment  orders  which  had  been  delayed  pre  year-end  and  which   were 
subsequently received  in the  first  quarter of  2013, and  good  aftermarket 

Strong activity levels continue to be  seen in Africa and South America,  with 
both regions  recording  year on  year  input  growth in  the  first  quarter. 
Project activity in Australia remains  at low levels, impacted by  conditions 
in the coal and iron ore  markets. Global aftermarket activity benefited  from 
the growing installed base and  strong production volumes with spares  volumes 
increasing through the period. 

We continue  to see  a solid  pipeline of  future opportunities  with a  clear 
switch  towards  smaller  brownfield  projects.  In  general,  projects   are 
progressing at a slower pace than  in prior years resulting in delivery  dates 
for a number of projects in the order book being delayed until the second half
of the year. 

Our guidance for full year divisional revenues and margins remains unchanged.


Reported order input was in line with our expectations, down 15% on the  prior 
year period and 21% on  a like for like  basis. Original equipment input  was 
42% lower on both a reported and  like for like basis. Aftermarket input  was 
up 7% against the prior year period (down 4% on a like for like basis). On  a 
sequential basis, like for like input  was 11% higher than the fourth  quarter 
of 2012. Input from Mathena was in line with expectations and integration  is 
progressing as planned.

Upstream markets remained challenging with average US rig count 12% lower year
on year and remaining around  2012 year-end levels. As anticipated,  Pressure 
Pumping market conditions improved  slightly in the  first quarter with  input 
levels increasing  through  the  quarter as  customers  aftermarket  inventory 
levels continued to normalise. First half Pressure Pumping operating  margins 
will be impacted by up to $10m of one-off costs in relation to the closure  of 
two small manufacturing facilities, with the resultant operating  efficiencies 
from centralising activities  in Fort Worth,  Texas, supporting higher  second 
half margins. First half  Pressure Pumping margins will  also be impacted  by 
the sale of the remaining stock of legacy fluid ends and lower margins on  new 
frac pump orders. Margins on all  other product categories continue to be  in 
line or ahead of expectations.

Like for like  Pressure Control (Seaboard)  input was down  on the prior  year 
period, but  up on  the last  quarter  of 2012,  reflecting lower  end  market 
activity levels and slight delays to the roll out of new product  initiatives. 
Services and Downstream operations each recorded positive input growth in the

Full year  divisional revenue  and  underlying operating  margin  expectations 
remain unchanged.


Order input for  the 13 weeks  was down 27%  on the prior  year period,  which 
included substantial nuclear valve and hydro refurbishment orders.  Excluding 
this nuclear contract, underlying  valve orders increased by  8% on the  prior 
year period with strong emerging market growth. Input was slightly lower than
expected due to  a number  of project  delays, which  are now  expected to  be 
delivered in the second  half of the year.  Original equipment input was  30% 
lower and aftermarket orders 23% lower  on the prior year period, impacted  by 
the timing of service contract awards. We continue to see good  opportunities 
in emerging markets with good underlying order growth in control and isolation

Our guidance for full year  divisional revenues and operating margins  remains 


Net debt at 29 March 2013 was  higher than that reported at 28 December  2012, 
primarily reflecting completion of the acquisition  of Mathena, Inc and the  R 
Wales group of companies and the translation of US dollar denominated debt.


1.Financial information is  given for  the 13  week quarter  ended 29  March 

2.Where growth  is provided  on a  like for  like basis,  like for  like  is 
    defined as comparison of current year results to the equivalent prior year
    period for those businesses  that have been part  of the Group  throughout 
    the current  and  prior year  reporting  period, on  a  constant  currency 

3.Order input is reported on a constant currency basis

A conference call for analysts and investors will be held at 8 a.m. (UK time)
on Wednesday 1 May to discuss this statement.  Participants can join the call
on +44 (0) 1452 555 566 using the conference ID 59146028. A recording of this
conference call will be available until Wednesday 07 May on +44 (0) 1452 550
000 using the conference ID 59146028#.

Contact details: 
The Weir Group PLC
Andrew Neilson,  Head  of Strategy  and  Corporate Tel. 0141 308 3750
Jonathan Milne, Group Communications               Tel. 0141 308 3781 (Mobile:
                                                   07713 789536)
Brunswick Group                                    Tel. 020 7404 5959
Patrick Handley
Will Carnwath

This information includes 'forward-looking statements'. All statements  other 
than statements  of  historical  fact included  in  this  release,  including, 
without limitation,  those  regarding  the Weir  Group's  financial  position, 
business strategy, plans (including development plans and objectives  relating 
to the  Company's products  and  services) and  objectives of  management  for 
future operations, are  forward-looking statements.  These statements  contain 
the words "anticipate", "believe", "intend", "estimate", "expect" and words of
similar meaning.  Such forward-looking  statements involve  known and  unknown 
risks, uncertainties and other important  factors that could cause the  actual 
results, performance or achievements of the Company to be materially different
from future results, performance or achievements expressed or implied by  such 
forward-looking statements.  Such  forward-looking  statements  are  based  on 
numerous assumptions  regarding  the  Company's present  and  future  business 
strategies and  the environment  in  which the  Company  will operate  in  the 
future. These forward-looking  statements speak only  as at the  date of  this 
document. The Company  expressly disclaims  any obligation  or undertaking  to 
disseminate  any  updates  or  revisions  to  any  forward-looking  statements 
contained herein  to reflect  any change  in the  Company's expectations  with 
regard thereto or any change in  events, conditions or circumstances on  which 
any such statement is based. Past business and financial performance cannot be
relied on as an indication of future performance.


This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: The Weir Group PLC via Thomson Reuters ONE
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