Excelent update this morning and ahead of expectations.

Dollar boosts Weir expectations

MoneyAM

Weir Group says in a trading update it continued to perform well in the final quarter and expects pre-tax profit to increase to 174 million for 2008.

Previous guidance at October was for 170m. Weir made 114m PTP in 2007.

The engineering group says it benefitted particularly from strengthening of the US dollar against sterling in the quarter.

'The group has continued to perform well, growing input, revenue and profit on a constant currency basis compared to the equivalent prior year period.'

Net debt at 31 December is expected to be lower than the half-year figure of 261.7m.

Weir says it 'enters 2009 in a good position and is ready to respond to the market challenges as they develop during the year'.

Barclays Capital today reaffirms its overweight investment rating on Weir Group PLC (LON:WEIR) and raised its price target to 2600p (from 2350p).