Last checked at 18 Oct 2011 09:18
Renold plc
("Renold" or "the Company")
Trading Update
Renold, a leading international supplier of industrial chains and related power transmission products, is today issuing a trading update covering the half year ended 30 September 2011.
Incremental revenues continue to deliver strong conversion to operating profit consistent with achieving the market forecasts of doubling our adjusted operating profit in the current financial year.
The double digit growth rates noted when the full year results were announced in May 2011 have continued throughout the first half of the current financial year with underlying* sales 13% higher than the comparable period last year.
Order intake exceeded sales during the period with the result that order books are 3% ahead of the same time last year. Forward order visibility for the third quarter is also ahead of the comparable period last year. Sales in the Chain division were 13% ahead of the comparable period in the prior year. Torque Transmission sales were 11% ahead with order books similarly increased. The major regions all saw double digit sales growth.
Given the ongoing macro economic uncertainty in many of the world's major economies, the Group has accelerated a number of planned cost reduction initiatives. These actions will help to protect the full year result against unforeseen reductions in revenue growth in the second half.
There have been no other significant changes in the position of the Company over the period since the publication of the full year results for the year ended 31 March 2011.
The Group expects to announce its Interim Results on Tuesday 15 November 2011.
\* The use of "underlying" excludes the impact of changes in foreign exchange rates.
18 October 2011
ENQUIRIES:
Renold plc | 0161 498 4500 |
Bob Davies, Chief Executive | |
Brian Tenner, Finance Director | |
College Hill | 020 7457 2020 |
Helen Tarbet | |
NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial chains and also manufactures a range of torque transmission products which are sold throughout the world to a broad range of original equipment manufacturers and distributors. The Company has a well deserved reputation for quality that is recognised worldwide. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel and mining.
Further information about Renold can be found on their website at: www.renold.com