Regrettably, the chief takeaway from Weir 's (WEIR) full-year results is that we got our March 2016 sell advice badly wrong. The engineer continues to trade at a significant premium to its historic earnings ratio, but with its resources markets beginning to show signs of recovery the outlook for a sustained, albeit gradual, recovery in sales has certainly improved.
IC TIP:
Hold
at
1965p
But there is no disguising the fact that 2016 was another tough year for the company. Orders were down 8 per cent at constant currencies, while operating profits pulled back 26 per cent on that basis on a 2.4 percentage point reduction in underlying margins.