Renishaw share price drops as it issues profit warning
Renishaw saw shares plummet this morning as it issued a profit warning, blaming weak demand in Asia.
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The FTSE 250 precision engineer now expects profit before tax to land in the range of £123m to £141m, a bracket lower than the £146m to £166m it predicted back in January’s half-year results.
It now expects revenue to land between £595m and £620m, compared to the £635m and £665m target shared just two months ago, when it warned of slowing demand.
However, it now sees those troubles lasting longer.
“As reported in the half year results, we experienced a slow down in demand in Asia for our encoder products and from large end-user manufacturers of consumer electronic products,” Renishaw said.
“Based on recent order trends and customer feedback, we now expect these conditions to continue through the remainder of this financial year.”
The company’s share price fell 12 per cent in early trading to 3,694p as investors sold out of the firm.
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Renishaw expects to release a trading statement for the nine months through to the end of March on 14 May.