Fenner's profits jump in first half, plans investments in capacity

Hessle, UK - Fenner plc has reported first-half profits almost double last year's equivalent figure. The conveyor belt manufacturer said operating profit increased by £8.4m to £14.3m in the six months to 28 February 2006, while revenue increased by 33 percent to £182.0m (2005: £137.1m) in the period.

Fenner said the strong performance was due mostly to organic growth, notably in the conveyor belting division. Fenner said demand in North America was strong in all sectors, but growth there was driven by strong demand for coal following increased oil prices. "These economic fundamentals are encouraging coal-based electricity plants to increase capacity and new generating plants are being developed at a record pace across North America and around the world. As a consequence, order intake for heavyweight conveyor belting reached unprecedented levels," said the company.

Fenner's Chairman, Colin Cooke noted that many of its plants are full to capacity and the company is likely to be limited by capacity constraints in the second half. he said Fenner has already identified areas where it might increase capacity. "We have and will be purchasing significant amounts of new plant which we expect will start to benefit next year

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Press release from Fenner

Supply constraint worries for Fenner Money Week (UK)