SCOTTISH engineering company Weir Group has revealed a 23 per cent tumble in first-quarter order input at its division which serves the oil and gas industry.
Weir Group, revealing this sharp fall in orders compared with the same period last year, said a further drop was expected in this division in the second quarter.
It highlighted a steeper decline in North American rig count than the market had expected.
Keith Cochrane, chief executive of Weir, said, in response to this, the Glasgow-based group was taking further actions to support profitability, including more workforce reductions and service-centre consolidations.
Weir said that group order input in the first quarter was down nine per cent on a year earlier. In Weir's minerals division, which serves the mining sector, first-quarter order input was up five per cent.
Mr Cochrane said: "Trading conditions in oil and gas markets were challenging through the quarter with a steeper decline in the North American rig count than the market had anticipated. Oil and gas activity levels are still falling, and we expect a further decline in divisional revenues in the second quarter."
He added: "While mining markets remained subdued, the performance of the minerals division once again demonstrated its resilience."
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