Weir Group’s operating profit in minerals division sees 13pc plunge

ENGINEERING COMPANY Weir Group, which a makes pipes and valves for the mining and energy industries, said first-half operating profit from its minerals unit fell 13 per cent from a year earlier.

It was hurt by declining capital investment from miners who have cut capital expenditure over the past five years and have looked to purchase or lease production facilities instead of building their own.

The Glasgow-based firm’s EU headquarters for minerals is in Todmorden. Weir also has a controls and valves division in Elland.

Weir Group’s mining unit accounted for about £1.11bn out of the group’s 2016 revenue of £1.84bn. The group’s revenue rose 26 per cent to £1.09bn in the first half that ended June 30, boosted by a 69 per cent jump in revenue from its North American segment.

Jon Stanton, CEO of Weir, said: “The first half of 2017 saw the Group make good progress as we fully captured opportunities in our main markets. In North America, the oil and gas division delivered a great set of results with margins rapidly improving in recent weeks. Demand increased sequentially, demonstrating shale’s position as a competitive and sustainable source of global energy supply.”

He added that mining markets also continued to improve with “good” demand for Weir’s technology.