Renishaw rides on manufacturing upturn

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Renishaw rides on manufacturing upturn
By Lisa Urquhart
Financial Times.com
January 27 2005
Strong manufacturing growth in Japan, Germany and the US led to an 82 per cent rise in interim profits at Renishaw, the precision instruments group.

Ben Taylor, assistant chief executive, said the group had ridden the upturn as economies in the countries improved. "Every one of our products has grown."
Mr Taylor also pointed to diversification into new business areas, particularly dental, which had stimulated growth.
The group, which produces measuring devices for manufacturing, including systems to measure teeth for implants and bridges, also benefited from its move into emerging markets, such as Russia and eastern Europe.
The need for ever more precise measurement in industry and technology has seen Renishaw focus continually on new technology. In the period £12.3m (£11m) was sunk into research. The investment is expected to lead to a number of new product launches this year.
In the six months to December 31 pre-tax profits were £12.2m (£6.7m), on turnover up 24 per cent to £72.5m.
The strong results, which were held back by a weak dollar, prompted a wave of analyst upgrades. David Buxton, engineering analyst at Durlacher, called them "stunning" and said: "The growth is down to the fact the company has very exciting products."
Earnings per share rose from 7.6p to 13.4p, and the interim dividend is increased to 6.1p (5.61p). The shares closed up 57p at 728p.