February 14, 2013 / 7:56 AM / 4 years ago

UPDATE 1-Chain-maker Renold warns on profit again

2 Min Read

* Second half operating profit seen lower than expectations

* Europe revenues down 7.5 pct, North America down 6.6 pct

LONDON, Feb 14 (Reuters) - Britain's Renold PLC issued its second profit warning since October, as sales of its industrial chains continued to slip.

Renold said on Thursday that its second half operating profit would be lower than previously expected, and in line with the first half operating profit, which was 3.6 million pounds ($5.6 million) before exceptionals.

In October, it warned that full-year profits would be hit by weak demand across Europe.

Renold said underlying revenue was down 8.7 percent in the four months to end-Jan, which it attributed to weakness in its Torque Transmission division and its North American chain business.

North American revenues slipped 6.6 percent in the period, after experiencing 6.3 percent growth in the first half.

Declines in European chain revenue eased to 7.5 percent, compared to a 15.8 percent fall in the first half.

Renold said it was cutting costs and shedding jobs to help boost its second half results and is undertaking a strategic review. New Chief Executive Robert Purcell, who began his role in January, is overseeing the process.

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