(Reuters) -British engineering firm Renishaw narrowed its full-year sales and profit outlook on Thursday, and said it will introduce a surcharge to pass on the additional costs brought on by U.S. tariffs.
The United States makes up about 20% of Renishaw’s global revenue, and the company has factories in the UK, Ireland and India.
WHY IT MATTERS
U.S. President Donald Trump’s global tariffs have weighed heavily on companies, making them cut or withdraw their forecasts entirely amid the persisting uncertainties.
Renishaw’s use of high-grade metals in its products, along with the exposure of its customers in aerospace, automotive and industrial machinery sectors, makes it particularly vulnerable to the impact.
CONTEXT
Renishaw, which makes high-precision products across healthcare, manufacturing and scientific research sectors, was grappling with weak demand from the semiconductor manufacturing market for the better part of the year.
It shut down the loss-making drug delivery operations on Thursday, but said neurosurgery activities will continue through its unit, Renishaw Neuro Solutions Ltd, while the company seeks a new owner for the business.
KEY QUOTE
“Under the current regime our products imported into the USA are either impacted by aluminium and steel tariffs or subject to the ‘reciprocal’ tariff regime,” the company said in a statement.
BY THE NUMBERS
Renishaw expects 2025 revenue to be in the range of 700 million pounds to 720 million pounds ($930.1 million-$956.7 million), versus previous expectations of 695 million pounds to 735 million pounds.
Adjusted pre-profit will now be between 109 million pounds and 127 million pounds, versus the 105 million pounds to 135 million pounds guided earlier.
MARKET REACTION
Shares of the Wotton-under-Edge, England-based company jumped nearly 13% to 2,580 pence in early trading.
($1 = 0.7526 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Eileen Soreng)
