30th May 2014 09:10
(Clarifying an article published at 0743 BST that the profit comparison is to consensus forecasts, rather than the year earlier. The correct version follows.)
LONDON (Alliance News) - Polymer products manufacturer Fenner PLC Friday said underlying pretax profit for the year to August 31 will be 10% to 15% below the prevailing market consensus forecast of GBP77.6 million, as trading conditions in the US continue to deteriorate while its Australian arm suffered a setback following the loss of a profitable contract.
In the year ended August 31, 2013, Fenner's pretax profit was GBP67.9 million, down from GBP86.6 million a year earlier.
The FTSE 250 company, which reported a fall in profit and revenue for the first half earlier this year, said trading conditions in the US have shown no sign of imminent improvement, while the coal industry remains cautious. It therefore expects its Engineered Conveyor Solutions arm to report significantly weaker results in the US than previously expected for the rest of the financial year.
Fenner's interim pretax profit was GBP17.6 million from GBP26.1 million, as revenue dropped to GBP359.8 million from GBP391.3 million a year earlier.
Fenner said that although trading conditions in Australia continue to improve, it lost out in a competitive tender for the supply of a 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.
However, the firm said Advanced Engineered Products, its other operating division, is trading well and its outlook remains "encouraging".
Fenner shares were down 12% at 341.47 pence Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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