(Corrects paragraph 10 to remove reference to Renishaw
competing with Sweden's Hexagon in the 3D printing market)
* First-half pretax profit slumps 65 pct
* Second-quarter pretax profit rises marginally
* Second-quarter revenue rises about 9 percent
* Sees revenue rising in second half
* Shares rise 6 pct, top gainer on FTSE-250 Midcap Index
By Tasim Zahid
Jan 30 British engineering company Renishaw Plc
returned to profit growth in the second quarter and
forecast a jump in revenue in the second half of the year,
sending its shares up as much as 8 percent.
Renishaw's stock was up 6 percent at 1908 pence at 1248 GMT
on Thursday, making it the biggest percentage gainer on the
FTSE-250 Midcap Index.
Earlier in the session, the stock had fallen 2 percent after
the company reported a 65 percent drop in first-half profit. The
stock reversed direction after investors digested the strong
"The main reason (for the stock movement) is that ... when
you dig deeply, there is a massive difference in the way they
performed in the first quarter and how they performed in the
second quarter," N+1 Singer analyst Jo Reedman told Reuters.
The company, which makes machine tool probes and gauges,
said second-quarter pretax profit rose 3.4 percent to 15 million
pounds ($25 million). Profit had slumped 62 percent in the first
However, pretax profit fell to 25.6 million pounds in the
six months ended Dec. 31, from a restated 42.2 million pounds a
Renishaw had posted strong first-quarter and first-half
results a year earlier mainly due to a large number of orders
from China in the consumer electronics market.
"Good demand in most of (Renishaw's) end markets is being
driven by increasing requirements to improve manufacturing
sophistication and automation," Numis Securities analyst Scott
Cagehin said in a note to clients.
Cagehin said he expect the company's growth rate to improve
in the second half due to easier comparisons with the year-ago
The Gloucestershire, England-based company also said it was
seeing strong demand for 3D additive manufacturing products.
"We are very early in the development of a major redesign
(of 3D printing ) and this could be a substantial part of
Renishaw's future," Ben Taylor, assistant chief executive, told
The company, which also makes robots used in neurosurgeries,
restated its 2013 results due to a change in accounting
($1 = 0.6041 British pounds)
(Reporting by Tasim Zahid in Bangalore; Editing by Savio