Business
The Weir Group PLC, H1-16 interim results
The Weir Group PLC, H1-16 interim results.
About this update from Weir Group Plc
[{"type":"text","content":"\n The Weir Group PLC, H1-16 interim resultsThe Weir Group PLC today reports its interim results for the six months up to 30 June 2016.First half performance ahead of market expectationsFirst half performance ahead of market expectations, constant currency full year guidance unchanged.Robust Minerals performance: margins and profits up; record quarterly aftermarket revenues in Q2.Oil & Gas remains cash generative but margins below break-even, reflecting tough market conditions.Improved Flow Control: margins and profits up, benefiting from strong cost control.Group-wide £50m of annualised cost reductions announced in 2016 on track:Cumulative annualised savings of £160m since Q4 2014. Up to £100m asset disposal programme progressing to plan: £46m achieved by end of July:Net debt/EBITDA2 of 2.8x, expected to fall during H2 despite forex movements.Substantial progress in innovation agenda: £38m in revenues from new products.Board changes: Keith Cochrane to be succeeded as CEO by Jon Stanton from 1 October 2016Continuing Operations5H1 2016H1 2015Reported GrowthConstant Currency1 Order input1 £873m £1,038m n/a -16% Revenue £866m £981m -12% -13% Operating profit2 £103m £128m -20% -22% Operating margin2 11.9% 13.1% -120bps -130bps Profit before tax2 £82m £108m -25% -25% Reported profit after tax £24m £38m -37% n/a Cash from operations6 £133m £202m -34% n/a Earnings per share2 29.6p 38.6p -23% n/a Dividend per share 15.0p 15.0p 0% n/a Return on Capital Employed3 8.4% 13.7% n/a -530bps Net debt £853m £825m4 -£28m n/a Keith Cochrane, Chief Executive, commented:\"Our first half performance was ahead of market expectations and demonstrated the Group's fundamental strength and resilience. While markets remained challenging, the Minerals division fully captured available opportunities, Flow Control improved margins and Oil & Gas grew market share in important product categories. As a whole, the Group continued to be highly cash generative and aggressively reduce costs, while also extending its technology leadership in products and services which are vital to our customers' operations. Our full year guidance for a reduction in constant currency Group operating profits is unchanged. Our reported numbers will benefit from a positive currency effect in the second half if current rates prevail. While there have...