Weir (WEIR) has reported a 23 per cent drop in orders and warned of further declines ahead as it struggles with the oil price slump that has caused its clients to slash spending.
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Pricing pressures were flagged as a major issue for the industrial pump and valve maker. Discounts ranging from 5 per cent to 20 per cent across its product portfolio triggered a 400 basis points drop in operating margins.
In response to an expected "significant reduction" in revenues and operating margins for the year ahead, the engineer announced an additional 125 job cuts to generate a further £10m of cost savings. But that wasn't enough to prevent analysts from slashing their EPS forecasts.
