30 May 2014 07:00
30 May 2014
Fenner PLC ("Fenner")
Trading Update
Fenner today is issuing the following trading update in relation to the year ended 31 August 2014.
In the USA, trading conditions and the cautious sentiment in the coal industry previously noted at the interim results have deteriorated and are showing no prospects for imminent improvement. ECS is therefore expected to see significantly weaker results in the USA than previously anticipated for the remainder of the financial year.
In Australia, whilst trading conditions generally continue to improve reflecting elevated levels of mineral extraction activity, ECS has recently been notified that it was unsuccessful in a competitive tender for the supply of conveyor belt to an iron ore miner in western Australia, which it had previously expected to manufacture and deliver during the final quarter of the financial year.
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 million1.
The performance and outlook for AEP for the remainder of the financial year and beyond is unchanged and remains encouraging.
1Consensus refers to pre-tax profit sourced from Bloomberg for the financial year ended 31 August 2014 as at 29 May 2014
Analyst and Investor conference call
A conference call for analysts and investors will be held at 8 a.m. (UK time) today to discuss this statement. Participants can join the call on + 44 (0)20 3059 8125. A recording of this conference call will be available until Thursday 05 June 2014 on + 44 (0)121 260 4861 using the access code 7259120 followed by #.
Forward-looking statements
Certain statements contained in this statement constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fenner, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements.
For further information please contact:
Fenner PLC | |
Nicholas Hobson, Chief Executive Officer Richard Perry, Group Finance Director | today: 020 7067 0000 thereafter: 01482 626501 |
Weber Shandwick Financial | |
Nick Oborne | 020 7067 0000 |
Notes to editors:
Fenner PLC is a world leader in reinforced polymer technology, providing local engineered solutions for performance-critical applications. The Group operates through two divisions:
Engineered Conveyor Solutions. The ECS division, trading under the Fenner Dunlop, Fenner and Dunlop brand names, is a recognised leader in the global conveying market. The division offers a unique, comprehensive suite of products and services, which serve the conveying needs of mining, power generation and bulk handling markets.
Advanced Engineered Products. The AEP division uses advanced polymeric materials and technical expertise to provide high value-added solutions to customers' most challenging engineering problems and to identify and develop new opportunities. Customers are spread across a variety of end-user segments, including oil & gas and medical which account for some 40 per cent of divisional revenue, together with construction, transportation, automation and general industrial. AEP's trading names are recognised globally and include Hallite, CDI Energy Products, EGC Critical Components, AIP, Fenner Precision, Fenner Drives, James Dawson, Mandals, Secant Medical and Xeridiem.