22nd Jul 2015 07:06
LONDON (Alliance News) - Engineering company Fenner PLC on Wednesday issues a profit warning as it said its Engineered Conveyor Solutions arm is taking a hit from a downturn in coal industry spending, adding to the ongoing oil and gas-related woes in its Advanced Engineered Products business.
Within AEP, industrial, medical and other non-oil businesses have continued to perform well in the second half of is financial year to the end of August, with strong demand and new business wins.
But the principal business in the unit, serving the oil and gas sector, has seen a reduced order intake since the end of its half-year in February, which has hit its trading results from April on in line with the ongoing challenges in the wider oil and gas industry.
In addition to this, its ECS unit in North America is getting bruised by sequentially lower production levels in the coal mining industry, some of which is being offset by good progress in the bulk materials sector.
But while AEP is still expected to meet Fenner's expectations for the full year, the problems facing the ECS business mean that full-year earnings for the company will be slightly below its previous forecasts.
Fenner shares were up 1.9% to 185.75 pence after the open on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Fenner PLC