Renold seeing return of strong growth in Europe

15th Feb 2012 11:19

Industrial chains maker Renold was flushed with success on Wednesday after a well-received trading update which revealed the company is building on the progress made in the first half of its financial year.The company said that year-on-year growth in underlying orders intake and sales since the beginning of October 1st 2011 has been in line with expectations. Both the Torque Transmission and Chain divisions are delivering sales growth. North America and Australasia have continued to show double digit percentage underlying growth. Early indications in the current fourth quarter (January to March) show the European businesses returning to double digit year-on-year underlying sales growth. In the group's third quarter (October to December) operational gearing and the conversion of incremental revenue into additional profitability continued the encouraging trend of the first half.The shares rose 3.125p to 32p following te trading update. jh