A gradual, year-long upward curve in the share price of Weir Group reversed direction sharply yesterday. After the engineer warned that profits in its minerals business would be lower than expected, its stock dropped by nearly 7 per cent.
No matter the largely upbeat tone of a statement on third-quarter trading, nor news of increasing activity in the minerals and oil and gas markets; investors were not satisfied. Shares that had been changing hands at more than £20 in recent days (albeit some way below the £27.45 of the autumn of 2014) tumbled 143p to £19.53.
Weir’s niche in providing pumps, valves and other components and engineering equipment remains strong, but it is heavily reliant on activity in its end markets. Exposed to the fortunes