21st Mar 2019 08:00
LONDON (Alliance News) - Renishaw PLC on Thursday lowered its revenue guidance and said it expects to report a fall in annual profit amid a slowdown in encoder product demand in Asia.
The engineering company now expects to report revenue for the year to the end of June in a range of GBP595 million to GBP620 million, down from GBP635 million to GBP665 million anticipated previously.
For financial 2018, Renishaw reported revenue of GBP611.5 million.
Pretax profit is expected between GBP123 million and GBP141 million, with adjusted pretax profit to total around GBP117 million to GBP135 million.
This would be at least 9.1% lower than the pretax profit of GBP155.2 million generated the year before, and down 7.0% from the adjusted profit of GBP145.1 million achieved the previous year.
"We experienced a slow down in demand in Asia for our encoder products and from large end-user manufacturers of consumer electronic products. Based on recent order trends and customer feedback, we now expect these conditions to continue through the remainder of this financial year," Renishaw said in a statement on Thursday.
Looking ahead, the company said it remains confident in its future prospects, notwithstanding current economic uncertainties.
Related Shares:
Renishaw