Weir on track with five-year plan

Pump and valves maker Weir said its five-year plan to double profits remained on track yesterday after a year in which it stormed into the FTSE 100 Index.

The Glasgow-based group, which has benefited from soaring demand in the oil, gas and mining sectors, posted a 58 per cent jump in full-year profits to £295m and said it was confident of further growth in the current year.

With a record order book and a number of mining ‘mega-projects’ expected to get under way in South America and Australia, Weir said it was well placed to achieve its ambition of doubling 2009 profits by 2014.

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The strong outlook, as well as recent upgrades to profit forecasts, has led to a 250 per cent surge in Weir’s shares over the last two years – a performance that caused it to burst into the FTSE 100 Index in September.

The company, which employs 9,000 staff and works for customers including BP, BAE Systems and the Ministry of Defence, said two of its three markets recovered by more than expected during 2010.

In the case of minerals, China’s growing demand for commodities has resulted in increased production volumes. In contrast, the power and industrial sector remained subdued, Weir added.

Orders in constant currency were 39 per cent higher than a year earlier at £1.9bn and helped revenues rise 18 per cent to £1.6bn in 2010.

Bottom-line results included the cost of December’s fine and confiscation order made after Weir admitted two charges of breaching United Nations sanctions imposed on Iraq before the 2003 invasion.