Questor share tip: Hold Weir as it maintains full-year outlook Weir makes equipment used in fracking, the process of cracking shale rock formations to extract natural gas. With US gas prices near historical lows because of the shale revolution, there has been less incentive for companies to invest in new drilling capacity. However, this is not the only market in which Weir operates. Indeed, in 2012 the oil and gas unit made up just one third of revenues. Also, the company services the mining sector, where capital expenditure is being squeezed. Last year 45pc of Weir's revenues came from the minerals division. Yesterday, the company said that first-quarter trading was resilient and in line with expectations and guidance remains unchanged for stable margins and low single-digit revenues growth. However, there was still some bear food in the statement. The group's performance over the period was impacted by a lower opening order book, particularly in the oil and gas division. This was partially offset by the contribution from recent acquisitions such as Mathena. For the group as a whole, like-for-like order input fell 14pc between January and the end of March when compared with last year. However, on a quarter-on-quarter basis, order input rose 14pc. In the minerals unit, order intake was down 6pc year-on-year. However, orders in the aftermarket rose 6pc. Questor continues to state the importance of the aftermarket - essentially spares and servicing - to Weir's investment case. Like Rolls-Royce, the larger Weir's installed base of original equipment becomes, the greater its income through the aftermarket route. However, aftermarket orders at oil and gas fell 4pc and order input fell 15pc. Management say there could be a recovery later in the year in the US, after natural gas prices hit a two-year high above $4 (£2.57) per British thermal unit. Order intake at the power and industrial unit slumped 27pc on a year-on-year basis. However, orders are lumpy, with the first quarter of last year seeing substantial orders for nuclear valves. When this big win is excluded, orders actually rose just 8pc. Management's confidence of an improving outlook for the rest of the year is reassuring. The shares have shown a little weakness since the full-year results earlier this year, but remain close to their all-time high. Many shorters will be sitting on losses. Weir operates in growth markets and has solid margins. The geographical spread is defensive and the company has even been mooted as a potential bid target. The shares are trading on a 2013 earnings multiple of 14.2, falling to 13, and yielding a prospective 1.9pc. This looks fair and a hold rating is maintained.