Renishaw sees signs of electronics upturn

Precision tool maker Renishaw said despite continuing global macroeconomic headwinds, it has seen good growth over the year to date and has started to see signs of an upturn in the electronics market.

Revenue for the third quarter ended 31 March 2012 rose to £81.6m from £78.4m the year before while pre-tax profit fell to £21.4m compared with £25.2m last year as it continues to invest in more staff and infrastructure to support future growth.

Renishaw saw growth in Europe, UK and the Americas while sales to the US, its biggest single market, are up from last year. Third quarter revenue in the Far East was down slightly from last year but it expects activity to pick up and sees full year revenue to be ahead of last year.

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The Gloucestershire-based engineering firm said overall the final quarter has started well with activity levels in April were ahead of the comparable period last year.

It currently expects adjusted pre-tax profit for the year to 30 June 2012 to recover the year-to-date shortfall and should be a little higher than the annual adjusted pre-tax profit of £80.4m in 2011.

Amongst its two main divisions, revenue at its metrology sector for the last 9 months rose 8% to £211.7m while its healthcare business sector saw 20% revenue growth to £17.1m.

The group said it continues to view future trading with confidence.

Shares in Renishaw fell 3.53% around 8am.

CJ