Weir reiterates FY guidance amid 'very strong demand'

2nd Nov 2022 07:49

(Sharecast News) - Engineering company Weir Group reiterated its full-year guidance on Wednesday amid "very strong demand" for its mining equipment and spares.

Weir expects "strong growth" in constant currency revenue and profits, with operating margin expansion in line with prior guidance and an 80-90% free operating cash conversion.

The FTSE 250-listed stated it had seen "significant growth" in aftermarket orders and strong execution, with production trends and installed base expansion supporting group aftermarket order growth of 21%, while integrated solutions and small brownfield activity drove group original equipment order growth of 12%.

Weir also said it had experienced "good operating momentum" and pricing power, pushing third-quarter revenues "strongly" higher year-on-year as supply chain and logistics challenges began to ease and input cost inflation was mitigated.

Chief executive Jon Stanton said: "We also made good progress on our strategic growth initiatives, with increasing customer demand for our digital offerings and solutions for more sustainable mining.

"Moving into the fourth quarter, supply chain challenges are easing, we have strong operating momentum and a record order book. Our FY22 guidance for strong revenue and profit growth, operating margin expansion and 80-90% free operating cash conversion is unchanged."

As of 0820 GMT, Weir shares were up 0.66% at 1,602.50p.

Reporting by Iain Gilbert at Sharecast.com