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UPDATE 1-Strong pound, lower healthcare sales dent Renishaw Q3 profit
May 14, 2014 / 7:58 AM / in 4 years

UPDATE 1-Strong pound, lower healthcare sales dent Renishaw Q3 profit

* Pretax profit falls 9 pct in third quarter

* Third-quarter revenue rises 3 pct

* Shares decline nearly 5 pct (Adds details)

May 14 (Reuters) - British precision engineer Renishaw Plc said third-quarter pretax profit fell 9 percent, hurt by a strong pound and a decline in healthcare product sales.

Shares in the FTSE-250 component fell nearly 5 percent in early trade on Wednesday, making it one of the top percentage losers on the London Stock Exchange.

The company said adjusted pretax profit fell to 14.4 million pounds, and would have been 2.2 million pounds higher at the exchange rate during the corresponding period last year.

Revenue for the period ended March 31 rose 3 percent to 84.5 million pounds, which the company said would have been 4.7 million pounds higher at the previous year’s sterling to dollar exchange rate.

The pound has jumped almost 10 percent against the U.S. dollar in the year to March 31, 2014.

The Gloucestershire-based firm generates about 90 percent of its revenue from outside the UK.

Renishaw’s healthcare offerings, which account for about 10 percent of total revenue, include Raman spectroscopy systems, dental systems, molecular diagnostic equipment and neurosurgical products.

The manufacturer of precision metrology and inspection equipment however said it remained confident of the long-term prospects of the group with continued investments in production systems and processes.

Renishaw told Reuters earlier in the year that it was witnessing a strong demand for its additive manufacturing products.

The worldwide market for 3D printing rose 34.9 percent - its highest growth rate in 17 years - to $3.07 billion last year, according to a recent report by Wohlers Associates, an additive manufacturing consulting firm. (

Shares in the company were trading down 4 percent at 1765 pence at 0755 GMT. (Reporting by Aashika Jain in Bangalore; Editing by Sunil Nair)

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