- Industrial chain and power-transmission product provider Renold said its annual adjusted operating profit would be below expectations amid rising raw material costs in China.

The company said it was making progress passing higher costs on to consumers, though not as fast as hoped.

'Raw material prices have continued to increase in certain territories and, along with the weakening of the US dollar exchange rate, are necessitating further sales price increases,' Renold said.

Revenue for the year was expected to rise by around 5%.

'Adjusted operating profit for the group is expected to be below previous expectations and slightly below the reported adjusted operating profit for the years ended 31 March 2016 and 31 March 2017,' the company said.

Chief executive Robert Purcell said the situation was 'masking the positive effects of our strategic actions, which are delivering organic growth across most Chain and Torque Transmission business units'.

'These actions have also improved the resilience of the group when faced with challenging conditions, as demonstrated by a third year of consistent profit delivery,' he said.

At 8:02am: [LON:RNO] Renold PLC share price was -3.4p at 41.2p

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