Renold Orders, Sales Picking Up After Swing To Loss

8th Jun 2010 08:39

LONDON (Dow Jones)--Chain maker Renold PLC (RNO.LN) said Tuesday sales and orders have picked up significantly, after reporting a loss for its fiscal year as demand fell and customers worked through inventories rather than order new stock. Renold, which makes chains, gears and couplings, said demand is picking up and added newer factories in India and China will allow it to access markets in Asia and the Americas where it is less well-established. The company supplies chains to businesses as diverse as lumber yards, energy companies and miners. Renold reported a pretax loss of GBP13.6 million for the year to March 31, compared with a profit of GBP2.9 million for the year earlier. Revenue declined 20% to GBP156.1 million as the global recession led Renold's customers to work through their inventories rather than order new stock. Earnings were also weighed on by lay offs and the costs of a refinancing. At 0731 GMT, shares in Renold were down 1 pence, or 3.6%, at 26.75 pence, underperforming a 0.8% higher Dow Jones U.K. Smaller Companies index. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires June 08, 2010 03:39 ET (07:39 GMT)