Engineering firm Weir Group reiterated its full-year guidance on Wednesday despite "elevated levels of uncertainty" related to critical metals disputes and fur The Weir Group Plc r tariffs between the US and China.
For the three months ended 30 September, Weir said total group orders, including contributions from its Micromine and Townley acquisitions, were up 2% year-on-year, with original equipment orders rising 15%, exluding large orders received in the prior year, and after market orders up 10% year-on-year.
Weir also said minerals OE orders were down 24% year-on-year, as expected, due to £48m of OCP and Reko Diq orders in prior year, while ESCO OE orders surged 36% as it continued its geographic expansion across the Asia-Pacific region.
Going into the fourth quarter, Weir said it was focused on executing against its "strong orderbook". For the full year, it reiterated guidance for growth in constant currency revenue and operating profits, operating margins of roughly 20%, and delivery of free operating cash conversion of 90% to 100%.
Weir did note that it continues to expect headwinds from translational foreign exchange, which it currently estimates to be £105m and £25m on its prior year comparative for revenue and operating profit, respectively.
"While we have fully mitigated trade tariffs enacted around the globe so far this year, we continue to carefully monitor macro events which could further impact our business. Specifically, we note elevated levels of uncertainty related to critical metals disputes and further tariffs between the US and China, and their potential to impact global supply chains and customer sentiment," added Weir.
Reporting by Iain Gilbert at Sharecast.com