Fenner trading in line but facing tough trading in conveyor arm

16th Jul 2014 09:50

Engineering group Fenner reported trading in line but warned that tough trading conditions in its engineering conveyor business were not improving.Fenner, which makes conveyor equipment for the mining and other heavy industries, said trading in the period from March 1st to July 15th had matched guidance provided in May.The group said its engineering conveyor business, ECS, was still facing weak market sentiment in the US coal industry."Whilst there has been no further deterioration in ECS's trading position since the group's trading update in May, there are no signs that any improvement is imminent and measures are being taken to manage costs and capacity across the business," it said.In Australia, ECS was continuing to benefit from high levels of mineral extraction, but lower commodity prices continue to affect miners' profit."ECS has an active programme of contract tendering and, with its modern plant and skilled workforce, expects to maintain its share of the belting market in Australia," it said.The group said its advanced engineered products business, which makes equipment for the oil & gas and medical sectors, had traded encouragingly in line with expectations and had growth opportunities.Fenner said its finances remained strong with borrowings as expected.Shares in Fenner rose 0.3p to 343.1p at 09:56 in London.PW