But the fall-out of the crude oil price slump had an even more adverse impact on Weir’s Oil & Gas Division, were revenues fell 34% to £401 million – tipping the division into a £9 million loss. This represents a complete wipe-out of profits from the previous year – down by 115%.
Weir said the downturn in the oil, gas and commodities markets was the worst it had seen in more than 30 years and its results statement also cited the drop in capital spending by mining companies of 50% since 2012 as another factor.
Jon Stanton, Chief Executive, said: “Following a challenging and prolonged downturn, the group returned to growth in the fourth quarter of 2016 as our main markets showed signs of improvement and we benefited from our on-going investment in new technology and long-term customer relationships”.
Founded in 1871, Weir Group has a presence in more than 70 countries, with over 14,000 people around the world working in three divisions: Minerals, Oil & Gas and Flow Control.