Weir Group 2013 Interim Report (PDF, 0.59 MB) - The Weir Group

OutlookMineralsSupported by the opening order book we expectsequential growth in both aftermarket and originalequipment revenue in the second half, assuming nofurther project and commissioning slippages. Divisionalrevenue growth is expected to be slightly lower than ourprevious expectations, reflecting revised project deliveryand commissioning schedules. Following the strongfirst half performance, second half margins are expectedto be in line with the first half and ahead of our priorexpectations, such that full year profit expectationsremain unchanged.Oil & GasFull year divisional revenues are anticipated to be slightlybetter than previous expectations, supported by higherpressure pumping sales, although still down on 2012.Operating margins are expected to be slightly loweryear on year, below prior expectations, with secondhalf margin improvement supported by the benefitsof first half restructuring actions and increased salesof new higher margin products, offset by the impactof additional sales of lower margin product lines.Divisional profit expectations remain unchanged.SummaryWe expect the Group to continue to benefit from its globalpresence and diverse exposure, despite challengingmarket conditions. The Group is well positioned to takefull advantage of the range of opportunities across itsend markets in the second half of the year.We anticipate good sequential revenue and profit growthin the second half, assuming a continued recovery inupstream Oil & Gas and no further deterioration, or projectdelays, in our mining end markets. As a result we remainon track to meet our full year expectations and continueto expect to deliver low single digit revenue growth andbroadly stable margins on 2012.Power & IndustrialFull year divisional revenue, profit and operating marginexpectations remain unchanged, with strong sequentialsecond half revenue and margin growth supported bythe strong opening order book, and first half investmentin operational capabilities.13