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

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Financial HighlightsOrder input at £1,258m decreased 5% in constantcurrency terms and was 7% lower on a like for likebasis. Original equipment orders were down 23%(down 21% like for like) impacted by project delays inMinerals and excess frac pump capacity in Oil & Gas.Aftermarket orders were up 9% (4% like for like),with a strong double digit increase in Oil & Gas,and represented 64% of overall input (2012: 55%).Revenue declined by 11% to £1,198m on a constantcurrency basis, down 12% like for like. Original equipmentrepresented 37% of revenues with aftermarket revenuesaccounting for 63% (2012: 46% and 54% respectively).Emerging markets revenues were broadly flat on theprior year with the proportion of total Group revenuesfrom these markets increasing to 37% (2012: 33%).Operating profit from continuing operations beforeexceptional items and intangibles amortisationdecreased by 12% to £217m (2012 restated to reflectpension costs: £247m) after a net positive currencytranslation impact of £5m. This performance was drivenby reduced profit in Oil & Gas which was partially offsetby a 9% year on year increase in Minerals and a broadlyflat profit performance in Power & Industrial. One-offcosts of £6m were incurred in the period (2012: £3m)of which £2m (2012: £3m) related to acquisitiontransaction and integration costs. In 2013, the remaining£4m one-off costs related to the closure of two smallmanufacturing facilities in Oil & Gas. EBITDA was£246m (2012 restated: £271m).Operating margin was 18.1%, a reduction of 60bpson the prior year (2012: 18.7% and 18.8% on a constantcurrency basis) with lower margins in Oil & Gas partiallyoffset by stronger than expected margins in Minerals.On a like for like basis, the operating margin was 17.4%(2012: 19.1%), down 170bps, again primarily due to lowermargins and a smaller contribution from Oil & Gas.Net finance costs before exceptional items were£24m in total (2012 restated: £22m) with the increasedue to higher net debt following the acquisitions madeduring the period.Profit before tax from continuing operations butbefore exceptional items and intangibles amortisationdecreased by 14% to £193m (2012 restated: £225m).Reported profit before tax from continuing operationsdecreased by 18% to £165m (2012 restated: £201m)after intangibles amortisation of £22m (2012: £18m),with exceptional items in the period of £6m (2012: £6m).Tax charge for the period of £51m (2012: £65m) onprofit before tax from continuing operations beforeexceptional items and intangibles amortisation of £193m(2012: £225m) represents an underlying effective taxrate of 26.6% (2012: 28.8%), primarily reflecting a lowerproportion of US profits.Weir Oil & Gas – Texas, USAWeir Minerals – Alberta, Canada4 The Weir Group PLC Interim Report 2013
Earnings per share from continuing operationsbefore exceptional items and intangibles amortisationdecreased by 13% to 66.4p (2012: 75.9p). Reportedearnings per share including exceptional items,intangibles amortisation and profit from discontinuedoperations was 56.6p (2012 restated: 69.4p).Cash generated from operations decreasedby 8% before working capital movements to £246m(2012: £268m). Working capital outflows of £63m(2012: £127m) reflected early gains from working capitalreduction initiatives offset by shifts in timing of OEprojects in Minerals and resultant changes to the profileof advance payment receipts. Cash generated fromoperations increased by 29% from £141m to £183mrepresenting an EBITDA to cash conversion ratioof 74% (2012: 52%). Net capital expenditure wasdown 24% year on year at £40m (2012: £53m)with investment in further capacity in the Mineralsdivision and expenditure in Oil & Gas to enable theclosure of two small manufacturing facilities andthe consolidation of operations into Fort Worth.Free cash flow from continuing operations wasan inflow of £8m (2012: outflow of £40m). Outflowsin respect of acquisitions were £214m giving a netdebt of £950m (December 2012: £689m). On a reportedand pro-forma basis, the ratio of net debt to EBITDAwas 1.8 times.Return on Capital employed of 25.2% on a like forlike basis was down on the prior year (2012: 30.5%) dueto lower profits and an increase in capital employed.Dividend The Board is recommending an interimdividend of 8.8p (2012: 8.0p) a 10% increase on theprior year, which is in line with previous guidance.The dividend will be paid on 1 November toshareholders on the register on 4 October 2013.Weir Oil & Gas – Texas, USAWeir Power & Industrial – Montreal, Canada5
Page 1 and 2: The Weir Group PLCInterim Report 20
Page 3 and 4: Highlights2013Results for the 26 we
Page 5: General OverviewOverall Group first
Page 9 and 10: Strategic progressThe Minerals divi
Page 11 and 12: Strategic progressThe integration o
Page 13 and 14: Operational performanceOrder input
Page 15 and 16: OutlookMineralsSupported by the ope
Page 17 and 18: Consolidated Statement of Comprehen
Page 19 and 20: Consolidated Cash Flow Statementfor
Page 21 and 22: Capitalredemptionreserve£ming of t
Page 23 and 24: 2. Segment informationFor managemen
Page 25 and 26: 52 weeks ended 28 December 2012Mine
Page 27 and 28: 5. Earnings per shareBasic earnings
Page 29 and 30: 7. Property, plant & equipment & in
Page 31 and 32: 9. Interest-bearing loans and borro
Page 33 and 34: The Group enters into derivative fi
Page 35 and 36: The following tables summarise the
Page 37 and 38: Directors Statement of Responsibili
Page 39 and 40: Shareholder InformationFinancial Ca

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

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