(Adds details, analyst comments, share movement)
Jan 14 (Reuters) - Fenner Plc, a maker of conveyorbelts and polymer products, said it expected the steep fall inoil prices and weak commodity prices to curb demand for itsproducts, hurting its full-year earnings.
The company expects full-year earnings to be slightly belowits previous guidance.
Fenner shares fell as much as 10 percent in early trading totheir lowest since June 2010. They recovered later and were up2.1 percent at 205 pence 0847 GMT.
The company, which has already been hit by the slowdown inthe mining industry due to oversupply, said it had implementedcost-cut measures and deferred certain capital projects tocontrol margins.
Fenner said it would take an exceptional charge related tothe cost cuts but did not quantify it.
The deferral of future major projects is expected tosignificantly reduce capital expenditure in 2016 than previouslyindicated, the company said.
"The good news is that the management has begun to acceptthat it is not operating in growth markets and it needs to stopthrowing more good money after bad," Panmure Gordon analystSanjay Jha said in a note.
Panmure Gordon said it expected Fenner's earnings per shareto fall by at least 28 percent in the current year, whileanticipating a 40 percent cut in dividend.
Liberum analysts expect full-year consensus EPS to fall byabout 10 percent to about 20 pence, "slightly below" theprevious consensus range of 21-23 pence.
Margins in its largest Engineered Conveyor Solutions (ECS)division continued to decline as it has not yet seen a recoveryin its markets, Fenner said.
The company generates about 60 percent of its total revenuefrom the ECS unit, and the rest from its Advanced EngineeredProducts division.
Fenner added that the cost-cut actions would reduce cashexpenditure across the group by 9 million pounds ($13.7 million)on an annualised basis. ($1 = 0.6588 pounds) (Reporting by Aashika Jain in Bengaluru; Editing by GopakumarWarrier)