Interim Management Statement

RNS Number : 1031J

Renold PLC

02 August 2012

 



Renold plc

("Renold" or "the Company")

Interim Management Statement

Renold, a leading international supplier of industrial chains and related power transmission products, announces its Interim Management Statement for the first quarter of the current financial year.

Trading conditions have softened in a number of territories due to macro-economic uncertainty.  Against this backdrop, Chain delivered strong double digit growth in North America which, combined with mixed positions elsewhere in the world, resulted in a marginal overall reduction in sales.  In particular, sales in Switzerland continue to be impacted by the relative strength of the Swiss Franc and accounted for Chain sales as a whole being below the level achieved in the same quarter of the prior year.

Torque Transmission has a healthy pipeline of active tenders and sales opportunities that give confidence the division will achieve good growth for the year as a whole.  Torque Transmission delivered sales growth in a number of geographical locations but a reduction in South Africa led to a slight overall decline.  The key market sectors of Power Generation and Mass Transit delivered strong double digit growth on the comparative period in the prior year.

Ongoing cost control has partially mitigated the impact of the lost contribution from lower sales.  This includes the European back-office restructuring programme which continues to progress well.

Our continuous improvement programme, covering all aspects of working capital, combined with careful management of the other components of cash flow, delivered cash generation and debt levels better than expectations and significantly better than the same period in the prior year.

The level of available near term opportunities in Torque Transmission and Chain, combined with continuing reductions in our cost base, will enable us to maintain some positive momentum in profitability in the year as a whole, albeit at a level which is below current market expectations.

2 August 2012

ENQUIRIES:

Renold plc                                                        0161 498 4517

Bob Davies, Chief Executive

Brian Tenner, Finance Director

Arden Partners                                               020 614 5917

Chris Hardie

College Hill                                                       020 7457 2020

Mark Garraway

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

 

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