Weir Group PLC sees demand pick up from subdued levels
The longer-term bid activity is improving, reflecting the positive fundamentals for mining, Weir said
PLC () said demand, which had been hit by the coronavirus (COVID-19) pandemic, strengthened towards the end of the third quarter.
Continuing orders, even once you strip out the pumps and valve specialist’s largest-ever order (£100mln) in the corresponding period of 2019, however, were still down 11% year-on-year in the third quarter of 2020.
READ Weir Group shares pump higher as it secures biggest ever order worth £100mln
The company, which recently announced the sale of US$405mln sale of its oil & gas division, is now focused on the mining sector, where it says longer-term bid activity is improving.
“Mining markets remained relatively robust in the third quarter and while Covid-19 continued to impact ore production levels and customer decision making, there was a strengthening in demand towards the end of the period,” said Jon Stanton, the chief executive officer of Weir in a statement.
“The positive long-term fundamentals for our markets are unchanged, including the key role of essential metals in building the new economy and the need for mining operations to reduce their environmental impact. This is reflected in our strengthening project pipeline, particularly for our smarter, more efficient and sustainable solutions,” he added.
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