Fenner prospects wane on set-backs in US, Australia
ERJ staff report (PR)
London – Fenner plc has warned that its conveyor belts business is now expecting “significantly weaker” results than previously anticipated due to a decline in confidence in the US coal industry and the loss of a major deal in Australia.
“Trading conditions and the cautious sentiment in the [US] coal industry, previously noted at the interim results, have deteriorated and are showing no prospects for imminent improvement,” the UK group said in a 30 May trading update.
A further set-back cropped up In Australia, where Fenner was recently notified that it was unsuccessful in a competitive tender for the supply of conveyor belt to an iron ore miner in western Australia.
ECS had previously expected to manufacture and deliver during the final quarter of the financial year, said Fenner, noting, though, generally improving trading conditions in Australia due to increasing levels of mineral extraction activity.
The combined effect of these factors could be to reduce the group's underlying profit before tax by 10-15% relative to the prevailing market consensus forecast of £77.6 million for the group’s financial year to 31 Aug, the group said.
Fenner supplies conveyor belts mining, power generation and bulk handling industries through its engineered conveyor solutions (ECS) division - trading under the Fenner Dunlop, Fenner and Dunlop brand names.