Weir Group's biggest unit posts 13 pct fall in H1 operating profit
Weir Group Plc, a maker of pipes and valves for mining and energy industries, said first-half operating profit from its minerals unit fell 13 percent from a year earlier, hurt by declining capital investment from miners.
Weir Group Plc, a maker of pipes and valves for mining and energy industries, said first-half operating profit from its minerals unit fell 13 percent from a year earlier, hurt by declining capital investment from miners.
The company's shares fell as much as 3.2 percent and were last down 2.6 percent at 1,866 pence as of 0724 GMT, making them one of the worst performers on the FTSE midcap index.
Miners have cut capital expenditure over the past five years and have looked to purchase or lease production facilities instead of building their own, cutting demand for new equipment.
Weir Group's mining unit accounted for about 1.11 billion pounds ($1.46 billion) out of the group's 2016 revenue of 1.84 billion pounds.
The group's revenue rose 26 percent to 1.09 billion pounds in the first half that ended June 30, boosted by a 69 percent jump in revenue from its North American segment. ($1 = 0.7611 pounds)
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)