Weir Group oil and gas orders fall

engineering company Weir Group said orders from its oil and gas business fell 23 per cent in the first quarter and it expects the decline to continue in the second quarter.

The industrial engineering firm said it was planning another £10m in cost reductions from its oil and gas segment.

Weir is planning to cut another 125 jobs, mostly in its North American oil and gas business, and will consolidate its service centres in the region, Andrew Neilson, director of strategy and corporate affairs said.

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Chief executive, Keith Cochrane, said: “Trading conditions in oil and gas markets were challenging through the quarter with a steeper decline in the North American rig count than the market had anticipated.”

Weir said first-quarter revenue on a constant currency basis fell, in line with the 9 per cent decline in order input.

The company, which makes valves and pumps for the energy and mining industries, said orders from its mining business were up 5 percent in the quarter and kept its revenue and operating margin forecast for the division.

Operating margin for the first quarter fell 400 basis points.