Renold Says Sales Rebound Boosts First-Quarter Profit

7th Jul 2010 07:39

LONDON (Dow Jones)--Chain maker Renold PLC (RNO.LN) Wednesday said profit for its fiscal first quarter was well ahead of its expectations following a rebound in sales in Western countries hard hit by recession. Renold added orders have also improved and its outlook for the six months to Sept. 30 has brightened. First-quarter orders were 30% higher than a year earlier, when orders were at their weakest. The company said it remains cautious about the second half of its fiscal year. Renold, which makes chains for customers ranging from factories to miners and lumber yards, said destocking--where customers work through inventories rather than order new stock--has largely ended. There are some instances of customers beginning to rebuild their inventories, Renold said. Renold didn't say what its earnings expectations for its fiscal first quarter were. Analysts expect the company to report earnings of 1 pence for the year to the end of March 2011, according to FactSet data. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 07, 2010 02:39 ET (06:39 GMT)