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Weir Group PLC on Thursday backed annual guidance and set out a confident outlook, as the company predicts strong demand from the mining sector amid the transition to net-zero carbon emissions. The mining technology firm said orders rose 4% at constant currency in the first quarter of 2023 ‘During the quarter we made good progress as we grew orders, revenue and margins. We continued to increase market share with our differentiated technology while also benefiting from the long-term structural tailwinds which underpin our mining markets,’ Weir said. ‘Commodity prices are well above miners’ cost to produce, and ongoing tightness in physical inventories and strong end market demand are incentivising our customers to maximise ore production. Miners are responding by accelerating production from existing assets, as large projects remain slow to convert.’ Weir still expects an adjusted operating margin of 17% for 2023, which would be an improvement from 16.0% in 2022. ‘The value creation opportunity for Weir is compelling. The mining industry needs to produce more critical metals to support the transition to net-zero, and must extract these in a more sustainable way. Our leading global brands, engineering capability and technology-led strategy means we are well placed to capitalise,’ Chief Executive Jon Stanton said. Weir shares fell 1.5% to 1,865.50 pence each in London on Thursday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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