Cost cuts help Weir to raise hopes for profits

SCOTTISH engineer Weir Group yesterday raised its 2009 profit expectations following a series of cost cuts.

However, the Glasgow-headquartered firm said it was too early to upgrade its outlook for 2010 due to a lower opening order book and uncertainty over the speed of economic recovery.

Keith Cochrane, chief executive, said orders from both minerals, and oil and gas divisions would be somewhat lower at the start of the year. The two divisions accounted for more than 80 per cent of the company's revenue in 2008.

He said: "The power and industrials division had a good year, and therefore its order book will be pretty robust as we go forward."

For the year ended 1 January, the maker of pumps and valves for the mining, oil and gas, and power generation sectors now expects adjusted profit from continuing operations to increase to about 185 million. On 2 November it had forecast adjusted profit from continuing operations at the upper end of analysts' forecasts of between 151.6m and 177.1m.

Weir's shares last night closed down 0.44 per cent at 794.50p.