FTSE 250-listed engineer Renishaw PLC (LSE:RSW) shares were up 16% in morning trading on Thursday after the precision engineer upped guidance and said it is introducing a surcharge to pass on the impact of additional costs from US tariffs.
In results for its fiscal third quarter, the group reported revenue of £180.7 million, a 5% year-on-year increase that was an improvement on the 3% growth in the first half.
Exports to the US, representing roughly 20% of global revenues, are seeing products being hit by Donald Trump's 20% tariffs on aluminium and steel, based on the mass of their material content, or subject to the 10% 'reciprocal' tariff regime on output from its factories in the UK, Ireland and India.
Guidance for the full year was increased to £700-720 million of revenue, up from £695-735 million, feeding through to adjusted pre-tax profit of £109-127 million, versus £105-135 million before.
"We enter the final quarter of the year with good momentum, but we are mindful of the volatile economic backdrop and its potential to impact our customers' investment decisions," Renishaw said in the statement.
Adjusted profit before tax of £87.5 million has been generated in the first nine months of the year so far, up 1%, while statutory profit before tax was down 1% to £85.6 million.
The stock rose 370p to 2,655p.
---adds share price movement---