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Hardware & electrical equipment

Renishaw shares wobble on profit warning

Renishaw PLC (LSE:RSW)'s share price wobbled this morning after the semiconductor manufacturer posted a profit warning for the quarter ending in September.

It posted a trading update today showing a 9% drop in total revenue for the three months to the end of September, year over year, to £164.5 million.

The manufacturer said it expects adjusted profit before tax for the first quarter of its fiscal year 2024 to total £28 million, 4% lower than the previous quarter and a 30% drop compared to the £40 million it generated in the equivalent part of fiscal 2023.

Renishaw said trading conditions “remain challenging due to subdued demand” in the semiconductor industry, but reported positive investment trends in robotics, defence, low emissions transport and manufacturing.

It said it will continue to carefully manage costs and improve productivity while increasing some of its prices.

Renishaw’s share price fell by more than 5% in early trades this morning to 2,884.8p, down from 3,054p at close yesterday, before settling down again by mid-morning.

Renishaw will release its results for the half year ending in December on 6 February 2024.

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