Fenner reports strong growth in first half

ERJ staff report (DS)

London -- Bucking the weak business trend, Fenner PLC has reported strong sales growth and profits on slightly down for the six months ended 28 February 2009. The company said sales were up by 28 percent to £257.6 million (euro 289 million) thanks to a series of acquisitions over the year. Operating profits were marginally, down, at £18.6 million compared with £19.7 million a year ago.

Conveyor Belting revenue increased to £181.2m (2008: £136.3m), helped by strong sales to the coal mining industry. Underlying operating profit was £11.7m (2008: £12.9m), reflecting softness in global industrial markets.

Advanced Engineered Products revenue increased to £76.4m (2008: £64.8m). Underlying operating profit was £9.8m (2008: £9.7m), with growth from acquisitions and currency movements offset by weaker trading conditions.

Colin Cooke, Chairman, commented: "Our Conveyor Belting Division, representing 70% of Group revenue, has demonstrated resilience over the period. Its primary business driver, thermal coal mining, being less susceptible to the downturn in the global economy, maintained demand through the period for both our belting products and enlarged service businesses. In our Advanced Engineered Products Division, our niche businesses, supplying into the oil and gas and medical sectors, performed well whilst those parts of the Group with exposure to general industrial applications inevitably experienced softening."

He added, "There now appear to be more signs of stability with the effects of customer de-stocking coming to an end in some of the industrial businesses. This has not yet given rise to a significant increase in volumes but action has been taken to adjust our costs appropriately in each business.

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