Fenner says delayed polymer sales hit first-half results

March 11 Tue Mar 11, 2014 6:57am EDT

March 11 (Reuters) - Fenner Plc said its half-yearly results were hit by a delay in sales of advanced polymeric materials, compounding subdued demand from coal miners for industrial conveyor belts.

Fenner's shares fell more than 6 percent in early trading on Tuesday, making the stock one of the top percentage losers on the FTSE-250 Midcap Index.

Fenner will report first-half results on April 23.

In a trading update for the six months ended Feb. 28, Fenner said some sales from its advanced engineered products (AEP) unit would be deferred to the second half of the current financial year or next year. The company's financial year ends on Aug. 31.

Fenner did not say why the sales had been deferred.

The AEP unit, which contributes about 40 percent of the company's total revenue, makes polymeric products ranging from hearing aid parts to components for wind turbines.

The company said its half-year results would be below those for the first half of its previous financial year but the full year would show modest growth in constant-currency terms.

Fenner said its larger unit, which makes conveyor belts, could benefit from improving demand in Australia as well as increased coal consumption and lower coal stockpiles in the United States.

But sentiment among its coal-mining customers was "cautious", reflecting low commodity prices, the company said.

Shares of Fenner, which is based in Hessle, East Yorkshire, were down 5.8 percent at 420.3 pence on the London Stock Exchange at 1051 GMT.

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