Weir’s (WEIR) struggles with the commodity price downturn are hardly a secret these days. Last year the maker of pumps used in the mining and oil and gas industries encountered a trading period on par, or perhaps even worse, than the one it faced during the financial recession. Vast cost reductions, including the axing of 40 per cent of its North American workforce, followed, prompting some to suggest that the group’s downtrodden shares are starting to show glimmers of value. We disagree with this assessment and fear a dividend cut could be the only solution to restrengthen its fragile balance sheet. Naturally, such a decision would have big implications for the share price.
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