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Renishaw hit by markets

The specialist in measuring systems has suffered due to weakening electronics markets
October 15, 2019

Renishaw (RSW) shares were knocked by as much as 13 per cent in early trading as the specialist in ‘metrology’ equipment (measuring systems) revealed the toll of lower Asian orders and a “challenging global macroeconomic environment”.

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Following two previous warnings this year the company reported first-quarter revenues of £124.6m, which are beneath the £154m it achieved in the previous year. In its metrology business, Renishaw revealed that “a number of large orders from end-user manufacturers of consumer electronic products” in the Asia-Pacific (APAC) region secured in the first quarter of 2019 have not been repeated. 

The US/China trade war and slowdown in the global economy are hitting demand from electronics in the Asia-Pacific business, with Brexit uncertainty also an issue. Renishaw warned that trading conditions are expected to remain challenging.