30th May 2014 06:43
LONDON (Alliance News) - Polymer products manufacturer Fenner PLC Friday said underlying pretax profit for the year to August 31 could fall by 10% to 15%, as trading conditions in the US continue to deteriorate while its Australian arm suffered a setback following the loss of a profitable contract.
The 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.
FTSE 250-listed 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".
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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