Slump in sales stabilises says Renold
INDUSTRIAL group Renold said today the slump in sales which prompted a severe cost cutting drive, including 800 job losses, “appears to have stabilised”.
The North West industrial chain maker said that although customers were not rushing to place new orders, having cut stocks, there are “indications in some areas destocking may be abating.”
Wythenshawe-based Renold axed its full year dividend last month when it reported a slump in full year profits from £9.1m to £5.3m before exceptional items. After restructuring costs, the figure dived to £2.9m
The 800 job cuts, which represent 25% of the group’s global workforce, came as first quarter sales tumbled.
The redundancies, and other action including pay cuts and reduced working hours, aim to save the firm £16m a year.
In a trading statement today, covering the period from April 1, the group said it had taken “decisive action” to resize the business” in line with a 25% fall in first quarter sales.
“These actions have partially mitigated the impact of the reduced contributions resulting from lower sales revenues,” the company said.
Renold, whose chains, gears and couplngs have a wide range of uses, from shopping centre escalators to theme park rides, confirmed it had extended its banking facilities until June 2012.
The company has around 500 staff in the North West – at sites in Rochdale and Stockport as well as Wythenshawe.
