Continued resilience in Minerals: aftermarket revenues stable.
Sequential input decline in Oil & Gas: in line with market conditions.
Power & Industrial: improved profitability despite challenging markets.
Aggressively responding to market conditions. £110m in annualised cost savings delivered.
Strong cash generation: free cash flow increased to £132m, up 67%; 123% EBITDA cash conversion.
R&D investment up 17%.
Power & Industrial division restructured as Weir Flow Control.
£365m of operating exceptional costs in 2015, including £225m Oil & Gas impairment.

Commenting on the results, Keith Cochrane, Chief Executive said:

“Despite market challenges which are unprecedented in recent years, Weir has delivered a resilient performance in Minerals, maintained leadership and market share in Oil & Gas, and created an additional platform for growth with the new Flow Control division. As Weir has always done, we adapted quickly to market conditions. Costs were aggressively reduced while the cash generative nature of the business supported continued investment in our strategic priorities.

Given ongoing market conditions, 2016 will be another challenging year. As a result, we are planning for a further reduction in constant currency Group operating profits, driven primarily by lower activity levels in upstream oil and gas markets. We will continue to invest for the medium term supported by our aftermarket-focused business model, further cost reduction initiatives, non-core asset disposals and a clear focus on cash generation, to ensure we benefit fully and quickly when markets improve.”