Fenner sees FY results 'comfortably above' previous expectations

Engineering group Fenner said on Friday that it expects results for the current financial year to be “comfortably above” previous expectations amid stronger order intake and improved customer enquiries.

The company said trading in the first quarter has been satisfactory, reflecting progress made in all its business.

In CDI, which is the principal oil & gas business of Fenner’s Advanced Engineered Products division, the company is seeing an improving trend in order intake and customer enquiries reflecting its strengthening market position, together with a further rise in the US rig count.

Within AEP's specialist industrial businesses, Hallite is well ahead of last year, mainly thanks to marketing initiatives and operating efficiencies with the other businesses broadly in line with the same period last year.

Meanwhile, the medical businesses are performing well and in line with expectations.

In Engineered Conveyor Solutions, the North American industrial business is continuing to make progress on the back of the ongoing refocusing/restructuring programme announced last year. Fenner said there has been some increase in order intake from customers within the coal industry albeit from very low levels.

In Europe, trading continues to be satisfactory, despite low levels of major project work.

In Australia, ECS is ahead of last year's results although, as expected, higher commodity prices and the general improvement in sentiment within the mining industry have not yet translated into increased orders for conveyor belts as miners focus on controlling costs.

In China, restructuring within the coal mining industry has, as expected, led to ECS seeing a much reduced order intake.

“Whilst market conditions remain similar to those reflected in our November statement, we are performing well and gaining traction from market share gains and from our refocusing of the businesses,” the company said.