Renishaw has announced a cut its annual profit forecast for the second time in less than two months, as customer demand remained weak.The company had previously cut its full-year profit forecast in March, citing weak sales in Asia and softness in demand from consumer electronics makers. Renishaw has now stated it expects pre-tax profit for the year to June of between £111m and £126m and adjusted pre-tax profits in the range of £105m to £120m. Renishaw also reduced its full-year revenue guidance by a further 3 per cent to £580m to £600m. Including the March cut, it has brought its revenue outlook down 9 per cent.
Renishaw did not specify what prompted its latest forecast cut, but said it was “based on recent order trends and customer feedback.”
The Financial Times has reported: “William Lee, Renishaw chief executive, told the Financial Times the company had been hit by a downturn in its key Asian markets. The consumer electronics market, he said, was “very sluggish” and Renishaw had not seen the volumes it had previously expected. There had also been a downturn in the semiconductor market. “These are cyclical industries,” he added. “We are seeing steady underlying growth in some of our new product lines but we have been hit by downturns in these two markets.”
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