Bloomberg News

Renishaw Drops Most Since 2009 as Revenue Misses Its Forecast

October 13, 2011

Oct. 13 (Bloomberg) -- Renishaw Plc fell the most in London trading in more than two years after the U.K. maker of precision machine tools said revenue in the three months ended Sept. 30 increased less than predicted.

The shares plunged as much as 19 percent, the biggest intraday decline since March 2009, and were down 17 percent at 850 pence as of 3:27 p.m. The stock has slumped 55 percent since reaching a record on July 26 and has fallen 24 percent in the past year.

Revenue in the fiscal first quarter rose 15 percent to 70.5 million pounds ($110.8 million), less than planned, the Wootton- under-Edge, England-based company said in a statement today without specifying the figure it had forecast. Pretax profit fell to 13.6 million pounds from 15.1 million pounds a year earlier.

“Due to current uncertainties surrounding the global economy, the board is closely monitoring the group’s costs and future recruitment strategy,” Renishaw said in the statement. “Despite near-term challenges caused by the economic environment, we remain focused on positioning the group for further long-term growth.”

--Editors: Robert Valpuesta, Benedikt Kammel.

To contact the reporter on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.


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