Weir Group reports sharp fall in oil and gas orders

Weir Group makes industrial pumps and valves for the oil, gas and mining sectors

Engineering firm Weir Group has warned that its oil and gas division is continuing to face tough conditions.

The Glasgow-based firm said orders for the division were 34% lower over the first five months of 2015, compared with the same period last year.

It cited weak trading in its upstream businesses, Pressure Pumping and Pressure Control.

Weir said it had been impacted by a slowdown in North American oil field activity.

The group, which makes pumps and valves for the energy and mining industries, added that it suspended operations for a week at its facility in Fort Worth, Texas.

It now expects its full-year results to be more weighted towards the second half.

Weir's share price was down by more than 2% at 12:15.

'Very challenging'

Chief executive Keith Cochrane said: "As indicated in our trading statement in April, the second quarter is proving to be very challenging for the oil and gas division with the US rig count continuing to decline, albeit at a slower rate over the past month."

In April, Weir announced it would implement further cost-cutting measures, including job losses, after a sharp fall in orders for its oil and gas business.

It said it planned to cut 125 jobs, mostly in its North American oil and gas business.

Weir will also consolidate its service centres in the region in a bid to deliver cost savings of £10m.