Fenner continues to struggle in belting market

Hessle, UK – Fenner PLC has published its results for the half year ended 28 Feb 15, highlighting its ongoing struggle in the declining conveyor belting market.

“Against the backdrop of challenging market conditions, and as indicated in recent statements, ECS’s [Engineered Conveyor Solutions’] trading results for the period were low,” said a company release on 22 April.

While reporting a strong performance by its advanced engineering products (AEP) segment, the UK-based company said that the ECS conveyor belting division underperformed in almost all of its target markets.

ECS Americas continued to encounter weak market conditions in the US as its coal-mining customers faced falling natural gas prices, decreased coal exports and the impact of a relatively mild winter.

As for Asia-Pacific region, Fenner reported an “on-going pricing pressure in Australia” whilst also experiencing reduced demand for belting products and services.

The growth previously anticipated in newer markets such as West Africa was not achieved as the mining industry suffered from lower commodity prices and the outbreak of Ebola.

The company also stated that demand for ECS products and services remained subdued in Europe, though in South Africa the business continued its recovery from the previous year’s industrial action in the mining industry.

China was the only market where Fenner reported a “satisfactory” performance but stressed that the market remained intensely competitive.

The ECS revenue for the period was down from £233.4 million (€324.9 million) in 2014 to £211.8 million this year, while its underlying operating income declined by nearly £10 million to £13.4 million from £23.6 million in 2014.