Shares in Fenner (FENR) fell to their lowest level since June 2010 after the industrial engineer warned that plummeting oil and commodity prices are hurting earnings.
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The company's core ECS unit, which sells conveyor belts for the removal of coal from mines, had already been feeling the pain of low coal and iron ore prices. But now, with the price of brent crude at a six-year low, Fenner must also contend with slumping demand in its other division that sells plastic seals, bearings and pipes to oil and gas industries.
In response, the company said it had implemented cost-cutting measures and deferred certain capital projects to control margins.
