Renishaw to gain from new Apple products

LONDON: British precision engineering company Renishaw Plc said first-quarter revenue rose 28 percent, helped by strong growth in the Asia-Pacific region that some analysts linked to the launch of new products from Apple Inc. .
Renishaw, whose products include precision measurement and calibration systems and spectroscopy devices, said it expected the trend in revenue growth to continue in the current quarter.
The company’s stock rose as much as 10.8 percent, making it the top percentage gainer on the FTSE-250 Midcap Index.
“The group refers to good growth in the Far East, which we assume includes irregular orders related to production of new products for Apple,” N+1 Singer analyst Jo Reedman said in a note.
Sales rose to 101 million pounds ($162.8 million) in the three months ended Sept. 30 from 79 million pounds a year earlier. Renishaw said it would provide more details in an interim management statement on Oct. 16.
“We await with interest ...,” UBS analysts Robbie Capp and Mark Fielding said in a note.
“As of now we are somewhat in the dark — strong Q2 growth could potentially be explained by the later release (and thus production) of the Apple Watch.”
The Apple Watch — a device worn on the wrist that allows the wearer to tell time, make calls, check e-mail and track exercise — was unveiled recently and will go on sale in early 2015.
Renishaw reported a 17 percent jump in full-year profit in July, citing large “unpredictable” orders in the fourth quarter from an Asian customer that it did not identify.
The company did not disclose the value of the orders, but said they were mainly in its metrology division, which makes precision equipment.
The Asia-Pacific region was the biggest contributor to group revenue last year, accounting for about 38 percent of the total.
Of the eight analysts covering the stock, two rate it a “strong buy,” two a “buy” and four a “hold,” with a mean price target of 1834 pence, according to Thomson Reuters data.