By Anthony O. Goriainoff
Weir Group has announced an impressive performance for the first half of the year, with pretax profit rising and revenue meeting consensus. The UK engineering company also raised its guidance for the full year.
Financial Highlights
For the first half of the year, Weir Group reported a pretax profit of £170.3 million ($218.6 million), a significant increase from the £126 million recorded in the same period last year. The company’s adjusted operating profit, which excludes exceptional and one-off items, rose to £212 million compared to £167.5 million in the first half of 2022.
Revenue Growth
Weir Group’s revenue also saw a notable increase, reaching £1.3 billion compared to £1.10 billion in the previous year’s first half. The company attributes this growth to strong execution, the delivery of its record opening order book, and price increases from the previous year.
Revised Outlook
Looking ahead to the rest of 2023, Weir Group anticipates even stronger growth in constant currency revenue. The company also expects its operating profit to be towards the upper end of analyst expectations. Current consensus compiled by the company suggests an operating profit range of £428 million to £464 million.
Dividend Increase
The board of directors has approved an interim dividend of 17.8 pence per share, marking an increase from 13.5 pence in the previous year.
Positive Outlook
Weir Group is optimistic about its prospects as it enters the second half of the year. The company boasts a record order book, impressive operating momentum, and high activity levels in its mining markets.
