Conveyor belt maker Fenner improves sales, profits for full year

ERJ staff report (DS)

Marfleet, Hull -- Fenner PLC has reported strong results for the year ended 31 August 2008. The company reported operating profits up by 26 percent, to £49.3 million (Euro 59 million), on sales up 15 percent, at £437.8 million (Euro 524 million). The company said it is strongly placed, and business drivers remain highly positive over the longer term.

Colin Cooke, chairman said, "There has been a limited initial impact on us from the global financial crisis but we are of course alert to the wider economic effects that are generally expected. These are more likely to be seen in industrial markets although the niche nature of our businesses and the diversity of our markets provide additional strength and resilience. The energy markets remain buoyant with a positive outlook, particularly for coal, notwithstanding the recent reduction in the prices of commodities. The majority of our products and services are consumable supplies and are therefore driven by usage rather than the price of commodities. Accordingly the output for these remains robust.

Fenner said its conveyor belting division experienced high levels of demand in its major markets against a backdrop of buoyant global coal markets. Cooke said, "The division's result was strong as demand levels benefited from buoyant mining conditions in its major markets. In Asia Pacific, the continuing expansion and wider geographical coverage enabled us to further develop our product and service offerings. In Europe, the focus on developing new markets and leveraging our strong Dunlop brands was rewarded with higher volumes. In North America, demand remained high while some anticipated margin decline was evident in the latter months of the year as raw material costs increased significantly. The growth of our service businesses through the acquisitions completed to date has enhanced our capability to offer a complete engineered solution to our customers.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from Fenner