HomeMarket NewsMiningWeir Group Boosts Margins in Mining Sector, Elevates Dividend

Weir Group Boosts Margins in Mining Sector, Elevates Dividend

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Strong Momentum from Transformation Program

The Weir Group, based in Glasgow, is reveling in the substantial impact of its Performance Excellence transformation program. This initiative not only achieved cost savings of ยฃ6 million but also unearthed fresh opportunities leading to a twofold increase in the companyโ€™s cost-saving target to ยฃ60 million by 2026.

CEO Jon Stantonโ€™s Optimism

Jon Stanton, the CEO of Weir, expressed his satisfaction with the companyโ€™s performance, stating, โ€œWeir is delivering on the compelling value creation opportunity we set out as a focused mining technology company.โ€ He highlighted the unique capabilities enabling the company to take advantage of the escalating demand for critical metals and the shift towards more sustainable mining practices.

Enhanced Dividend and Future Projections

Following these achievements, Weirโ€™s board has proposed a final dividend of 20.8 pence per share, aligning with its strategy to distribute 33% of adjusted earnings per share (EPS). This recommendation results in a total annual dividend of 38.6 pence per share, marking an 18% increase from the previous year.

Weir anticipates a robust performance in 2024 supported by a strong order book and positive trends in ore production within the mining sector. Furthermore, the company foresees an expansion in its installed base. The ongoing benefits from the Performance Excellence program are poised to drive further margin growth, with a projected free operating cash conversion ranging from 90% to 100%. In the long run, this initiative aims to establish a 20% operating margin target by 2026.

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