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Renold sees first-half revenue falling as macroeconomic conditions weaken

By BFN News | 07:12 AM | Monday 14 October, 2019


Industrial chain and transmission product supplier Renold said it expected to report a fall in first-half revenue after macroeconomic conditions weakened in the second quarter. Revenue for the six months through September was seen falling 0.7%, though underlying revenue, which stripped out FX gains, was seen falling 3.2%. Renold said its ongoing focus on operational efficiency had helped to offset the impact of a challenging market environment, and that it was on course to deliver a full-year result in line with its expectations. 'The underlying decline in revenue most significantly reflects a deterioration in the industrial goods sector, impacting demand from distributors and OEMs in the group's key European and US industrial chain markets during the late summer period,' the company said. 'Order intake in the period also reflected the more challenging market conditions with a decline of 8.5% on an underlying basis, with orders 2.4% behind revenue for the period.' Renold said that recent order intake trends suggested that current market weakness would continue into the second half of the year. 'However, as previously indicated, the group expects the second half to benefit from an increasing contribution from the ongoing ramp-up in efficiency at the new Chinese factory, together with further cost reduction activities across the group resulting in a more equal weighting between the first and second halves of the year,' it added. Story provided by StockMarketWire.com

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