LONDON (May 5, 2008) — Fenner P.L.C. said pretax profits fell slightly in the six months ended Feb. 29, but sales grew and the outlook for the rest of the year is good.
Revenue for the period increased by 8 percent to $402.2 million with solid performances from its divisions.
Pretax profit fell $27.8 million, down from $31.8 million a year earlier.
Operating profits before exceptional items increased by 19 percent to $38.4 million. The company said growth was facilitated by operating efficiencies and economies of scale on higher throughput with 3 percent growth derived from acquisition activities.
The company said six acquisitions have been completed prior to, and after, the period end. The costs associated with these acquisitions had affected the exceptional items leading to the decline in pre-tax profit.
Fenner said its Conveyor Belting Division's sales increased 10.5 percent to $272.6 million, with strong energy markets driving demand for its products and services. The company said it increased margins through productivity improvements and plant efficiencies which overcame the effects of operating in an environment of increasing input costs.