ENGINEERING company Weir Group has warned that the second quarter is proving to be "very challenging" for its oil and gas division, with orders down sharply amid a continuing decline in rig count in the US.
The Glasgow-based company said today that order input at its oil and gas division in the first five months of this year was down 34 per cent on the same period of 2014, with weak trading in its upstream pressure pumping and pressure control businesses.
It said that, in line with actions taken by a number of employers in the North American oil and gas industry to reduce costs, it had temporarily suspended operations for a week at its facility in Fort Worth, Texas.
However, Weir chief executive Keith Cochrane noted US rig count had fallen at a slower pace over the past month. He said the minerals division, which serves the global mining sector, was showing resilience.
Mr Cochrane said: "As indicated in our trading statement in April, the second quarter is proving to be very challenging for the oil and gas division with the US rig count continuing to decline, albeit at a slower rate over the past month. Minerals, the Group's largest division, continued to demonstrate resilience in subdued markets and will today outline details of its strategic progress and plans for future growth."
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