The Weir Group PLC today reports its results for the 52 week period ended 2 January 2015.

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 input1	£2,473m	£2,274m	-	+9%
Revenue	£2,438m	£2,430m	0%	+9%
Operating profit2	£450m	£467m	-4%	+5%
Operating margin2	18.4%	19.2%	-80bps	-70bps
Profit before tax2	£409m	£418m	-2%	+7%
Cash from operations	£421m	£474m	-11%	-
Earnings per share2	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.”

Read the full announcement.

Enquiries

Investors: Stephen Christie +44 (0) 7795 110456
Media: Raymond Buchanan / Ross Easton +44 (0) 7713 261447 / +44 (0) 7920 190994
Brunswick: Patrick Handley / Nina Coad +44 (0) 20 7404 5959

Notes

2013 restated at 2014 average exchange rates.
Adjusted to exclude exceptional items and intangibles amortisation. Reported operating profit and profit before tax were £193m (2013: £490m) and £149m (2013: £431m) respectively. Reported earnings per share were 33.8p (2013: 157.2p).
Continuing operations EBIT before exceptional items on a constant currency basis (excluding Trio EBIT and exceptional items) divided by average net assets (excluding Trio net assets) excluding net debt and pension deficit (net of deferred tax asset).