22nd Oct 2020 11:08
(Alliance News) - Renishaw PLC said Thursday revenue struggled in the third quarter but boasted it remains in a strong financial position.
In the three months to September 30, the engineering firm saw pretax profit jump to GBP28.2 million from GBP5.1 million a year before. Adjusted pretax profit rose to GBP18.3 million from GBP4.3 million.
Adjusted profit before tax benefited from a number of actions taken last year to reduce the operating cost base and also included global job-retention grant income related to the Covid-19 crisis, Renishaw explained.
The profit rise came despite revenue in the quarter slipping 6% to GBP116.9 million from GBP124.6 million.
The firm's Metrology unit saw revenue dip 8% to GBP110.2 million from GBP119.7 million.
"Geographically, we have experienced revenue growth in our APAC region where we have seen increased demand for our optical and laser encoder product lines due to a recovery in the semiconductor market. Revenue in our EMEA and Americas regions has reduced due to the ongoing uncertainty caused by the pandemic and weaker demand, particularly in the aerospace and automotive sectors," Renishaw added.
Its Healthcare unit saw revenue rise to GBP5.7 million from GBP4.9 million, with increased demand for both our spectroscopy and neurological product lines.
Looking ahead, Renishaw said: "The group is in a strong financial position and we continue to invest in the development of new products and applications, along with targeted investment in production, and sales and marketing facilities around the world. Given the continuing uncertain macroeconomic backdrop, including the pandemic, we continue to expect challenging market conditions, particularly in the aerospace and automotive sectors."
Despite this, Renishaw said it remains confident in the prospects of the company.
Shares in Renishaw were down 0.2% in London on Thursday at 5,700.00 pence each.
By Paul McGowan; [email protected]
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