Weir Group PLC · LSE:WEIR
Weir — The Weir Group — H1 2001 Earnings Presentation
18 slides from Weir's earnings presentation, Aug 22, 2001
Slide 1: 2001 Interims: Results in line with expectation
The Weir Group PLC 2001 Interims Results in line with expectation
Slide 2: 2001 Interim Results Presentation
The Weir Group PLC 2001 Interim Results Presentation 22nd August 2001 Sir Ron Garrick Chairman Mark Selway Chief Executive David Dunbar Chief Operating Officer Ian Boyd Finance Director Kevin Gamble Executive Director
Slide 3: Agenda
Agenda ♦ Highlights of results MS ♦ Detailed financial review IMB ♦ Order input and market outlook MS ♦ Strategy and prospects RG ♦ Questions and answer session all
Slide 4: Improve operating performance
Improve operating performance ♦ Lean manufacture ♦ Supply chain management ♦ Transfer of best practice ♦ Appropriate new technologies
Slide 5: Financial highlights (first half 2001)
Financial highlights (first half 2001) Group Group Results Results Ongoing Ongoing Operations(3) (3) 2001 2001 2000 2000 % % 2001 2001 2000 2000 % % Turnover Turnover £462m £462m £420m £420m +10% +10% £451m £451m £386m £386m +17% +17% Operating Operating Profit Profit(1) (1) £29.5m £29.5m £31.5m £31
Slide 6: Consolidated Profit & Loss
Consolidated Profit & Loss 26 26 weeks weeks to to 29 29 June June 2001 2001 26 26 weeks weeks to to Continuing Continuing Discontinued Discontinued Total Total 30 30 June June 2000 2000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 TURNOVER TURNOVER Group Group Ongoing Ongoing 360,513 360,513 --
Slide 7: Discontinued(ing) businesses
Discontinued(ing) businesses Discontinued Discontinued DARCHEM DARCHEM Sold Sold to to management management buyout. buyout. 800 800 staff staff ENGINEERING ENGINEERING transferred transferred with with business. business. LIMITED LIMITED WEIR WEIR SYSTEMS SYSTEMS Small Small software software servi
Slide 8: Exceptional items
Exceptional items 2001 2000 2000 H1 H1 Year £’000s £’000s £’000s (Loss) profit on disposal of discontinued operations Pre-goodwill 400 - 11,961 Goodwill (1,520) - (9,644) (1,120) (1) (1) - 2,317 (3) (3) Impairment of fixed assets of discontinuing operations Tangible assets (2,506) (2) - - Goodwill (
Slide 9: Consolidated Profit & Loss
Consolidated Profit & Loss 26 26 weeks weeks to to 29 29 June June 2001 2001 26 26 weeks weeks to to Continuing Discontinued Continuing Discontinued Total Total 30 June 2000 30 June 2000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 TURNOVER TURNOVER Group Group Ongoing Ongoing 360,513 360,513 --
Slide 10: Tax Rate, EPS & Dividend
Tax Rate, EPS & Dividend 2001 2000 2000 H1 H1 Year Tax rate(1) (1) 25% 25% 25% Earnings per share FRS 3 basic(p) 5.1 7.7 20.7 Adjust: Goodwill amortisation 1.7 1.9 3.4 Exceptional items 2.8 - (1.2) Pre-Goodwill amortisation and exceptionals(p) 9.6 9.6 22.9 Dividend per share(p) 3.15 3.0 11.0 (1) Exc
Slide 11: Divisional Split
Divisional Split Turnover Turnover Operating Operating Profit (1) Margin Profit(1) Margin % % 2001 2001 2000 2000 2001 2001 2000 2000 2001 2001 2000 2000 H1 H1 H1 H1(2) (2) H1 H1 H1H1(2) (2) H1 H1 H1 H1 £ms £ms £ms £ms £ms £ms £ms£ms Engineering Engineering Products Products 285.5 285.5 259.9 259.9
Slide 12: Cash flow Statement (£m)
Cash flow Statement (£m) 2001 2000 H1 H1 Cash from operations 18.0 10.5 Interest and other income (5.0) (4.5) Taxation (2.7) (2.1) Capital expenditure (6.7) (8.1) Acquisitions/disposals 0.1 (1.0) Dividends (16.1) (15.0) Issue of shares 2.7 - FX hedging (1.6) - Cash outflow (11.3) (20.2) Exchange tra
Slide 13: Order Input 1999-2001
Order Input 1999-2001 £m 1st Half 2nd Half Total As Published 1998 312 319 631 1999 348 343 691 2000 348 387 735 2001 390 Ongoing Operations 2000 314 356 670 2001 379 +21% (excludes Joint Ventures and Associates)
Slide 14: Order input by market
Order input by market (ongoing operations) 1st Half 1st Half 2000 % 2001 % £m £m General Industrial 90,306 28.8 71,665 18.9 Minerals Processing 74,456 23.7 92,292 24.4 Oil & Gas 48,851 15.5 79,635 21.0 Power Generation 51,302 16.3 61,948 16.3 Water & Sewage 34,453 11.0 34,139 9.0 Naval & Marine 14,8
Slide 15: Order input by destination
Order input by destination (ongoing operations) 1st Half 1st Half 2000 % 2001 % £m £m Americas 138,924 44.2 150,050 39.6 United Kingdom 67,938 21.6 75,049 19.8 Mideast / Africa 26,823 8.5 56,173 14.8 Europe & FSU 34,539 11.0 40,875 10.8 Australia 23,129 7.4 32,373 8.5 Indo Pacific 22,851 7.3 24,531
Slide 16: Order input expectation
Order input expectation ♦ Oil ♦ Power ♦ Mineral Processing ♦ Naval & Marine
Slide 17: March 2001 statement
March 2001 statement ♦ we expected more buoyant oil and power markets confirmed ♦ we expected to book good levels of business from minerals processing confirmed ♦ we expected order input to show modest growth during the year on course ♦ we expected to make progress in 2001 but it was likely to occur
Slide 18: 2001 Interims: Results in line with expectation
The Weir Group PLC 2001 Interims Results in line with expectation