Companies: FENR   

Heavily sold down during 2002, shares in conveyor belt maker Fenner fell another 4.5p to 77p after chairman Colin Cooke informed the AGM that 'short term performance' would remain weak pending recovery in the US coal mining market. During November and December demand for its heavy weight conveyor belting products slumped in Europe and North America, and Fenner is now concentrating on cutting costs. Cooke also highlighted a 'temporary drop' in demand from the computer peripheral sector at its US specialist polymer businesses. Fenner is the world leader in the global conveyor belting market - its products include light and heavyweight belting for markets like mining and power generation, as well as precision motion control products for the computer copier market. In the year to August Fenner managed to lift sales 40% to £232.2m and operating profits to £16.6m (£14.1m), despite weakness in its North American markets. However pre-tax profits fell from £12.3m to only £5.5m, after £6.7m of exceptionals that mostly related to rationalisation costs. Forecasts in the market from broker Collins Stewart suggest profits of £18.4m and earnings of 12p for 2003, placing the shares on a lowly p/e of 6.4. But with the outlook uncertain, the shares are best avoided for now.

Fenner	LSE	£116.22m	66.50p	-5.50p
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