US Edition Indeed, it has been an impressive year for British engineering groups and the whole sector has outperformed the market significantly.
The FTSE 350 Engineering index is up 30pc so far this year compared with the FTSE 100's fall of 3pc. Momentum in the sector is continuing.
Weir makes industrial pumps and valves for minerals processing, oil & gas, power and general industry. It manufactures the equipment and provides spares and maintenance services.
The group focuses on tough pumps for high-wear applications, with its key competitive advantages found in its materials technology, strong niche market positions and service network.
The group's end markets are very strong, as global demand for commodities continues to be strong as Asian nations gentrify and demand for basic goods and construction materials soars.
In the six months to July 2, pre-tax profits rose 58pc to £144m on revenues that were 9pc ahead at £775m. New orders jumped by a quarter, with £863m of new business in the period. The after-market generated about 58pc of revenues in the first half.
The impressive results meant that the group could increase its interim dividend by 25pc to 6p. It will be paid on November 5 and new investors can buy the shares before October 6 to qualify for this payment.
However, it is true that the yield is not really that spectacular, at 2pc, but the expected payment should be covered by earnings more than 3.5 times. This means there is plenty of scope for increases in the future.
Net debt in the first half of the year fell to £97.7m from £119.2m at the start of the year.
Orders – for both new equipment and upgrades – should be "significantly" ahead of 2009 in the second half as well, according to Keith Cochrane, Weir's chief executive. Most new enquiries are from mineral producers and upstream oil and gas companies, he said.
The company also has ambitious plans for growth. It aims to double pre-tax profit by 2014 and this week's numbers appear to have confirmed that this is a realistic, although ambitious, goal.
One exciting area in which the group is involved is shale gas. The group's pumps are used to force sand and chemicals into the ground to fracture the rocks where the gas is trapped – a process known as "fracking".
There are lots of opportunities in this sector and there is likely to be good news on this front in the future. In the first half, shale helped boost North American revenues by 52pc.
The company is also looking for acquisitions in emerging markets such as the recent purchase of Malaysia-based Linatex.
The shares are trading on a December 2012 earnings multiple of 13.1 times, falling to 12.1 next year. They are up 10pc since they were recommended on June 17, compared with a market up 3pc. The shares remain a buy.