Renold confident as order book strengthens
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The industrial chains and torque transmission specialist Renold reported today (14 October) that a strengthening order book was giving good confidence for its upcoming third quarter and said that although visibility into the fourth quarter was more limited and macro-economic uncertainty continued, it is optimistic of maintaining improving profit trends.
In a trading update for the six months ended 30 September, Renold said an encouraging trend in sales and order growth had continued throughout the first half of the current financial year. Order intake had surpassed sales for five of the last six months leading to a growing order book. Order intake is 27% higher than the comparable period last year.
Most of the growth has come from the chain division where order intake is 37% ahead of last year. Torque Transmission continued with a strong order performance.
As part of the ongoing review of costs and manufacturing operations, Renold said it had commenced formal discussions with employee representatives on the future of the manufacturing arm of its Seclin facility in France that could result in cessation of those activities. Additionally the company's ERP implementation remained on schedule and this along with other initiatives is expected to improve both costs and working capital efficiency over time.
