13th Oct 2014 07:42
LONDON (Alliance News) - Engineering business Renold PLC Monday said it continues to make progress with its turnaround plans which helped improve operating margins in the first half of the year, but warned that while its trading in like with full year market expectations, its taking a bigger hit on currency moves than expected.
The company, which makes industrial chains and other power-transmission products, said it made further planned improvements in its operating margins in both its Chain and Torque Transmission businesses in the six months that ended September 30.
"The board's expectations for the full-year adjusted operating profit therefore remain in line with current market forecasts, despite the adverse impact of foreign exchange movements being currently higher than anticipated," the company said in a statement.
The company's adjusted profit figures exclude exceptional items and administration costs.
Renold has faced turbulent times over the last few years, which it has blamed on the "lack of external support from the market". Last year, the company's losses narrowed as it continued with what it said were "internal self-help measures" to combat the challenging market conditions. This included reducing excess manufacturing capacity of its Chain division, and the closure of its Bredbury facility.
The company's Chain division manufactures and sells power transmission and conveyor chains, while its Torque Transmission business manufactures and sells torque transmission products, such as gearboxes and couplings used in power transmission.
Renold shares were down 6.3% at 51.05 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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