Weir Group PLC, the Scotland based pipe and valve manufacturer has warned that its yearly profits could fall in response to the weakening oil price and increased competition in the Middle East
Weir Group has warned that their profits are to fall below expectations because of the weaknesses of the oil and gas markets, and have singled out the Middle East as being a particularly sensitive market at the moment. There have been suggestions that Weir Group's shares may fall in value by as much as 6.5 per cent.
The Telegraph have reported that the FTSE 250 company's share have fallen by more than five per cent, making Weir Group the biggest faller in the mid-cap index. Reuters have reported that the groups stock fell to a point which also made in the biggest percentage loser on the pan-European Stoxx 600 index.
The relatively new chief executive Jon Stanton, who has been in the role for around a month, has suggested that at the end of financial year, the pre-tax profit will be "slightly lower" than US$230 mn that analysts in London have forecasted, according to the Financial Times.
Stanton has admitted that there is some positivity to come. "There are signs in our third-quarter performance that our core markets have started to improve.
“Minerals aftermarket orders returned to growth and North American oil and gas customers started planning for higher activity levels next year. The trading results reflected the low point in the North American oil and gas market and tougher conditions in the Middle East."
