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Jan 6 British engineering company Fenner Plc
said on Friday it expected the current full-year
results to be "comfortably above" its expectations as order
intake and customer enquiries improved.
The company said it was also benefiting from an earlier
round of job cuts at its bigger business, Engineered Conveyor
Solutions (ECS), and there had been some increase in order
intake from the coal industry.
Fenner shares, which gained 65 percent in value last year,
were up 10.6 percent at 261 pence at 0806 GMT on the London
Engineering companies have been struggling as customers in
the oil, gas and mining businesses cut orders and waited longer
than usual to replace parts in the face of a widespread slump in
To combat the fall in orders, engineering companies that
cater to clients in the oil, gas and mining businesses had
resorted to cutting jobs. These job cuts along with a weak
sterling helped them avoid a sharp fall in profits.
Fenner's statement on Friday indicated a return in orders
and customer enquiries. The recent uptick in orders follows the
rise in oil prices to above $50 a barrel, after OPEC agreed on
Nov. 30 to its first oil output cuts since 2008.
Fenner's ECS unit, which makes conveyor belts for miners and
other industrial users, accounted for 56 percent of its latest
(Reporting by Vidya L Nathan in Bengaluru; Editing by Amrutha
Gayathri and Gopakumar Warrier)