(Bloomberg) — British engineering firm Renishaw Plc cut its profit outlook for the year while highlighting that trading levels in China are difficult to predict due to lockdowns.
The Gloucestershire, England-based company also narrowed its revenue forecast range for 2022, saying it was “mindful of global uncertainties,” according to an earnings statement on Tuesday. The company now anticipates adjusted pretax profit to be between 155 million pounds ($191 million) and 170 million pounds, down from the 157 million pounds to 181 million pounds range announced in February, and expects revenue of 655 million pounds to 675 million pounds, compared with 650 million pounds to 690 million pounds previously.
Renishaw shares fell as much as 6% in early London trading.
The company said it’s closely monitoring the current lockdowns in China and is taking mitigating actions where possible against potential business disruption. “This uncertain position makes trading levels in China in the remainder of this financial year difficult to predict,” it said.
Renishaw is in the process of ceasing its trading operations in Russia and booked a 2 million-pound impairment on its assets in the country during the third quarter. Combined sales to Russia and Belarus have represented around 1% of total group revenue, the company said.
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