LONDON—Fenner P.L.C. has posted increased sales and profits for the first half of fiscal 2017 thanks to the company's ongoing restructuring efforts.
Sales increased 11 percent to $393.4 million while profit increased 60 percent to $30.7 million compared to 2016.
Fenner said in an April 19 news release that its underlying operating margin of 7.8 percent, up compared to 5.4 percent in 2016, reflected improvements and efficiency gains across the firm's operations. It added that within the six-month period, it acquired non-controlling interests in BBCS and LECS conveyor-service businesses located in Australia.
The company's Advanced Engineered Products business unit, which includes sealing technologies, precision polymers and Solesis Medical Technologies, posted an adjusted revenue growth of 4 percent. Fenner cited improved operational performances, driven by market share gains, new product introductions and cost-control as contributing factors. The firm saw progressive improvements in the oil and gas industry during the period.
Its Engineered Conveyor Solutions business has been impacted by low mining activity globally, Fenner said. The unit saw a 10 percent drop in first-half sales.
There was a general improvement in business because of higher commodity prices and mineral extraction rates in the mining industry. However, Fenner said this improvement was not generally reflected in higher orders for replacement belt.
Throughout 2015 and 2016, Fenner launched major restructuring and downsizing activities in its ECS operations globally, including England, China, the U.S. and Australia. The company shifted focus from products to offering solutions in the mining sector in the face of declining mining activities and orders.