London – Fenner plc, the UK-based manufacturer of reinforced polymer components and industrial belting announced its results on 10 Nov, saying they were “in line with revised expectations and impacted by currency movements.”
In its annual report for financial year ended 31 Aug 2014, the group reported an 11-percent drop in revenues from its 2013 financial year, to £729.4 million.
However, in the backdrop of a strong Sterling, the group said the unfavourable translation effect of exchange rate movements amounted to £59.7 million, concluding that “on a constant currency basis, revenue decreased by four percent.”
In its 2014 segment report for Engineered Conveyor Solutions (ECS), the group said that the segment generated revenue of £463.9 million and an underlying operating profit of £45.7 million. “On a constant currency basis, revenue fell by eight percent and underlying operating profit fell by 21 percent.”
“Throughout the year, US coal miners reduced profitability and generally weak sentiment led to deferrals of belt servicing and replacement with an apparent increased willingness amongst miners to run belts closer to the point of failure,” explained Fenner.
In response to the difficult trading conditions, Fenner said its ECS unit had “been working with its customers in the US coal mining industry to reduce their belting costs through, for example, re-configuring their belting systems.”
ECS has also taken action to reduce its own costs and increase the operational flexibility of its manufacturing and servicing activities, the company added.
Sales of belt to other mining and industrial customers in the US and elsewhere in North America “held up better, reflecting generally improved economic conditions,” Fenner concluded.
In terms of regions, the Americas, principally the US, generated 39 percent of the division’s revenue and Asia Pacific, principally Australia, accounted for 41 percent of revenue. Europe, Middle East and Africa was responsible for the remaining 20 percent.