Weir raises forecasts again amid booming demand

Pump manufacturer Weir Group upped its profit expectations for the year yet again today, as it said booming demand from miners and oil producers had increased sales by almost a third.

It said third-quarter orders continued to improve in the mineral and oil & gas sectors as new projects began and older ones came on stream.

Analysts pushed up profit forecasts for the year to between £288 million and £290 million from last year's £187 million. Similarly, forecasts for 2011 were raised to between £305 million and £325 million.

Weir shares which have more than doubled so far this year paused for breath, slipping 33p to 1525p.

Orders for oil-related equipment have almost doubled in the first 39 weeks of the year, with particularly strong demand seen from North America.

Many orders placed in the last three months will carry through into 2011 guaranteeing a strong opening order book.

In minerals, the main areas of pick up have been South America and Australia with new equipment orders up by 33% and after-market orders up by 19%.

Evolution Securities raised its price target for the shares to 1800p while Numis is sticking with 1700p.