12th May 2020 10:02
(Alliance News) - Renishaw PLC on Tuesday reported a significant drop in earnings for the first nine months of financial 2020, forecasting a dive in its total annual earnings for the second year running.
Shares in the FTSE 250-listed engineering firm were up 1.0% at 3,812.00 pence each on Tuesday morning in London. A year ago, the stock was trading 8.4% higher at 4,134.00 pence each.
For the first three quarters of its financial year ending June 30, Renishaw reported revenue of GBP389.9 million, down 10% year-on-year from GBP431.1 million. Pretax profit was down 77% to GBP19.7 million from GBP84.8 million.
The company forecast full-year revenue of between GBP490 million to GBP505 million with adjusted pretax profit expected at between GBP45 million to GBP55 million. For comparison, revenue for financial 2019 and financial 2018 were GBP574.0 million and GBP611.5 million respectively. Adjusted pretax profit for financial 2019 and financial 2018 were GBP103.9 million and GBP145.1 million respectively.
Renishaw attributed its recent performance to a challenging global macroeconomic environment due to trade tensions between the US and China, and weaker demand in the machine tool sector.
Looking ahead, the company said it expects the tough conditions to continue. However, it added its strong financial position - resulting from savings released from cancelling its 14.0 pence interim dividend and other cash conservation measures - gives it confidence in its long-term prospects.
As at the end of March, Renishaw had net cash of GBP94.0 million
Full results for financial 2020 will be published in mid-August.
By Ife Taiwo; [email protected]
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