Renishaw profit plunges on weak China performance

Thu Jan 30, 2014 3:35am EST

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Jan 30 (Reuters) - British engineering company Renishaw Plc reported a 65 percent fall in first-half profit after its China division failed to better its last year's stellar performance.

Pretax profit fell to 25.6 million pounds ($42.4 million) in the six months ended Dec. 31 from a restated 42.2 million pounds a year earlier.

However, the company said it was expecting an improvement in trading activities and revenue in the second half.

Renishaw's first-half profit had risen last year mainly due to a large number of orders from China in the consumer electronics market. ()

The Gloucestershire, England-based company said total revenue fell 6 percent to 164 million pounds while revenue from the Far East division fell 25 percent to 59.1 million pounds.

Revenue from China, which contributes more than 10 percent to group revenue, fell 44 percent to 26.9 million pounds.

The FTSE-250 company, which manufactures machine tool probes, gauges and spectroscopy systems, said it restated its 2013 results due to a change in accounting practises.

Renishaw shares, which have fallen about 8 percent in the past year, were trading down 1.8 percent at 1768 pence at 0834 GMT. The stock was one of the biggest percentage losers on the FTSE-250 Midcap Index.

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