Renishaw hikes FY guidance, introduces tariff surcharge
Engineering firm hiked FY guidance on Thursday as it introduced a tariff surchage to help offset the impacts of Donald Trump's so-called "reciprocal" tariffs.
Renishaw posted Q3 revenues of £180.7m, up 5% year-on-year, accelerating from H1's 3% growth rate, while adjusted pre-tax profits were up approximately 27.65% quarter-on-quarter at £30.0m. Year-to-date, adjusted pre-tax profits were £87.5m, up 1%, while statutory pre-tax profits were down 1% at £85.6m.
The FTSE 250-listed group said exports to the US, which make up approximately 20% of total revenues, will be hit with either 20% tariffs on aluminium and steel or the 10% "reciprocal" tariffs on output from its factories in the UK, Ireland and India.
However, Renishaw raised its FY revenue guidance to £700.0m-720.0m, up from £695.0m-735.0m, while adjusted pre-tax profit guidance was upped to £109.0m-127.0m from £105.0m-135.0m.
"We have continued to deliver steady growth in mixed market conditions, with improving demand from semiconductor equipment builders throughout the year and a recent rise in machine tool probing sales. To support our growth strategy, we continue to focus on productivity, managing our portfolio of businesses and making targeted investments in our people, our production facilities, and our new product pipeline," said Renishaw.
"We enter the final quarter of the year with good momentum, but we are mindful of the volatile economic backdrop and its potential to impact our customers' investment decisions. We are therefore continuing to focus on pricing strategy and cost control."
As of 1050 BST, Renishaw shares had surged 15.7% to 2,643.84p.
Reporting by Iain Gilbert at Sharecast.com
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