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Softness Continues In Metrology Equipment Sector Markets

Following on from a spate of financial results from companies in 2019 recording softness in demand for metrology equipment – Renishaw has announced it half-year financial results to 31st December.

The metrology bellwether stated “It has been a challenging trading period for the group due to the global macroeconomic environment, including the ongoing uncertainty caused by the trade tensions between the USA and China and weaker demand in the machine tool sector,” 

Renishaw first half year revenue was £259.4m ($337.2m), compared with previous year of £296.7m ($385.7m).

Revenue in Renishaw’s metrology business for the first six months was £241.5m ($313.9), compared with £277.7m ($361.0) last year. Operating profit was was £17.4m ($22.62) for the period. “Despite subdued demand conditions overall, we have seen growth in our optical and laser encoder product lines due to a recovery in the semiconductor market” the company stated.

Also in its interim report for the first six months of its financial year, the group said that profits for the year were in line to be in the range of £50 ($65) to £70 ($91) million. Renishaw’s full-year profits for the year to June 2019 were £103.9 ($135.1) million. Despite the market headwinds Renishaw remains strong financially with a cash balance of £71.3m ($92.7).

Renishaw’s capital expenditure for the first six months was £28.4m ($36.9m). Expenditure on property totaled £20.8m ($27.0m) for the period, including an extension its UK Innovation Centre which is nearing completion; acquisition of property in Pune, India to provide capacity for future growth; refurbishment of the building purchased in Nagoya, Japan last year; and the construction of its new facility in Michigan, USA. Expenditure on plant and equipment for the period was £7.6m ($9.9m)

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