Fenner sees strong demand despite global worries

ENGINEER Fenner said it continues to see strong demand despite the tough economic outlook, with first quarter profitability considerably ahead of a year ago.

The Hessle, East Yorkshire-based group, which holds its annual shareholder meeting today, said order rates are in line with its expectations, but it expects growth to slow due to strong comparatives a year ago.

“Most of the growth in the first quarter has been generated organically,” said the group, which has been on an acquisition spree over the past 18 months.

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“The effect of businesses acquired has complemented our growth profile and is helping to establish a broader, more resilient group.

“While we note the uncertainty over the global economic outlook, we enter the seasonally quieter second quarter with the expected levels of order visibility and our businesses performing strongly.

“Revenue growth rates will slow as we enter a period of tougher comparatives, but we expect to make continued good progress.”

Late last year Fenner bought US conveyor company, Allison Custom Fabrication, giving it access to the mining markets of Pennsylvania and West Virginia. Allison specialises in the design, engineering, machining and metal fabrication of customised material handling equipment.

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The conveyor belting giant said the deal strengthens its subsidiary Fenner Dunlop’s strategy of being the “supplier of choice” for engineered conveyor solutions in the Americas.

It gives mining customers enjoy integrated solutions for improving the safety and total cost of ownership of materials handling, in both underground and above ground applications, said Fenner.

The group added turnover in its conveyor belting arm has been bolstered by strong demand from mining industries, with profits boosted by efficiency and higher factory use.

Its advanced engineered products division has grown revenues and profits, due to high demand and market share gains in oil and gas, medical and industrial OEM markets.

However, Fenner said its growth rate has slowed due to “moderate distributor de-stocking”, as distributors work through old stock piles.

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