Scottish engineering group Weir said today it believes it is going to start 2012 with a record order book after a continued run of strong growth.
The Glasgow-based company said it had seen record new orders in the third quarter, up 27% on the same period last year, and that the trend had continued through October powered by strong upstream activity in North America as firms look to exploit the shale boom there.
Upstream orders in its oil and gas division were up 84% in the 39 weeks to the end of September compared to the same period last year.
The firm, which specialises in well pumps and flow-control equipment, said overall, its oil and gas division orders were up 56% in the 39-week period.
“Continued growth in North American horizontal rig count, a growing installed base and the conversion of initial customer enquiries into 2012 forward pump orders means that we now expect upstream input for the full year to exceed $1billion (£625million), providing a record year end order book and a strong start to 2012,” said the firm.
Weir’s chief executive Keith Cochrane was reported as saying the firm was on the look out for acquisitions and could spend a total of up to £600million on either one or a number of deals.
But he also said the firm was always looking at a long list of opportunities at any one time.
Weir, which has a five-year plan to double its 2009 profits by 2014, said sales and profits were also up in the 39-week period.
In its minerals business, the firm said orders rose 25% in the quarter, compared to the same period last year.
Its power and industrial division saw orders rise 23% in the 39 weeks to the end of September compared to the same period last year.
It said the market for the division remained mixed due to continuing delays in nuclear projects.
In an earlier update, Weir said its first half revenue was £1.03billion, up 33% on the previous year. Pre-tax profits for the first half were up 24% at £178million.
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