Renold Regulatory News (RNO)

31 Jan 2005 07:01

Renold PLC31 January 2005 31 January 2005 Renold PLC Trading Statement Following a weaker than anticipated performance in the period since the interimannouncement, Renold plc ("Renold") advises that profits for the current yearending 31st March 2005 will be significantly lower than the Board's previousexpectation for the year. The two influences of increasing raw material price rises and adverse exchangerates have worsened further and these, coupled with the extra costs in theAutomotive business relating to the supplier quality issue identified in theinterim statement, more than account for this weaker performance. In addition,although the Lean manufacturing initiatives in the Group have improved directlabour efficiencies they have produced a reduction in stocks which has alsoimpacted profits significantly. Order levels in North America remain good but orders in the UK and WesternEurope have remained flat. Enquiries: Renold:Robert Davies Chief Executive 0161 498 4500Stephen Mole Finance Director 0161 498 4500 Weber Shandwick Square Mile:Terry Garrett/ Stephanie Badjonat 0207 067 0700 This information is provided by RNS The company news service from the London Stock Exchange