Renishaw announces 12 per cent drop in fourth quarter revenues

24th Jul 2013 11:02

Renishaw, the FTSE 250-listed manufacturer of measurement, motion control, spectroscopy equipment and precision machining reported lower than expected profits for the fourth quarter of its fiscal year 2013. For the full fiscal year 2013 the company announced a 5% rise in net revenues to £346.9m, while operating profits decreased to £81.974m from £83.2m in the year before. As the company itself states, total group revenue for the year "was not as high a level as epected earlier in the year." The strongest growth was realised in the Far East, especially China, where sales were 7% ahead of last year's total of £130.2m. In Europe, revenue of £96.0m (2012 £95.7m) was at a similar level to last year.More specifically, fourth quarter revenue fell by 12% year-on-year with costs rising steadily with recruitment. Operating margins of circa 23.4% for the fourth quarter were still respectable but less than the fiscal year 2012 and first half 2013 averages of 25.7% and 24.6%, analysts at Investec point out. Operating profits for the full year dropped to £82m from £83.2 in fiscal year 2012.Despite all of the above the company´s dividend per share for the year just ended will rise 4% to 40p. As of 10:59AM the firm´s shares are down by 2.55% to 1,527p having early traded at the bottom of the FTSE 250. AB