Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Engineering company Weir swung to a deep annual loss after it wrote down the value of its North American oil and gas business.
Pre-tax losses for the year through December amounted to £379m, compared to a profit of £18m on-year, and included a £546m impairment of the American business.
Revenue rose 9% to £2.66bn, while pre-tax profit from continuing operations fell 2% to £303m.
Weir declared a full-year dividend of 46.95p per share, up 2% on-year.
Chief executive Jon Stanton said the company's mining business had a strong year, having expanded its margins.
'North American oil and gas market conditions deteriorated significantly through the year and we undertook a major cost reduction programme in response,' Stanton said.
'While the long-term prospects for shale remain positive, current market dynamics mean it now has a very different investment case to our premium mining technology positions.'
'We are therefore taking actions so that we can maximise value for shareholders whenever the right opportunity is identified.'
Stanton also said there was uncertainty over the impact of coronavirus on the global economy and demand for natural resources.
'Assuming underlying demand does not change, we expect further good constant currency growth in our mining-focused businesses to be offset by the continued challenges in North American oil and gas markets,' he said.
At 8:07am: (LON:WEIR) Weir Group PLC share price was +44p at 1294.5p