WEIR Group shares tumbled nearly 6% yesterday in a fairly weak sector, after the Glasgow-based engineering group said operating profits in its latest four-and-a-half months were ''much in line'' with last year, writes Ian McConnell.
Addressing the company's annual meeting, chairman Lord Weir said that there had been some slippage in the timing of major contract awards, but added that this was expected to correct itself later in the year.
Shares in Weir Group, which fell as low as 224p in January, have had a strong run since but were already off recent highs. They lost 16.5p to 269p yesterday.
Lord Weir told the meeting: ''Our annual report stated that profits were likely to be weighted towards the second half of the year and that we remain confident that overall progress will continue, and I can see no reason today to depart from that view.''
Weir Group increased pre-tax profits from #49m to #60.1m in the 52 weeks to December 26 last year. Lord Weir said the company continued with ''an active investigation of possible acquisition opportunities''.
Chief executive Sir Ron Garrick said prices were high but that the company was looking at acquisitions which bolted on to existing activities.
He said it was looking at one prospect with annual turnover of about #23m and another with sales of about #12m. He added: ''We are in the process of trying to finalise agreements. You will see something this year, I am sure.'' Sir Ron was, as ever, unperturbed by the strength of the pound because of Weir Group's substantial overseas manufacturing interests.
Even though Weir Group's turnover from Asia has fallen heavily in the last two years, Sir Ron highlighted the opportunities arising from Asian countries' efforts to exploit oil and gas and copper resources and the availability of dollar-denominated contracts to supply Korean shipbuilders.
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