Renishaw Share Discussion Threads

[richaims] 31/3/2009 16:10

As with one or two other shares, the consistency of the continuing downward trend suggests to me that it might be possible to buy these shares at a much lower price later this year.

One to keep watching - it should be easy to spot any consistent future sustainable reversal of the downward trend.

[richaims] 31/3/2009 16:07

The chart looks grim :

[richaims] 17/3/2009 18:00

Telegraph 11/03/09 :

"Renishaw axes 500 staff weeks after they agree 20pc pay cut

Renishaw, the precision engineering group, has announced plans to make more than a fifth of its workforce redundant just weeks after persuading staff to take a 20pc pay cut.

By Jonathan Sibun
Last Updated: 8:34PM GMT 11 Mar 2009

The Gloucestershire-based company said it would lay off 500 of its 2,240 staff globally after a further deterioration in business conditions as it warned of a £10m operating loss in the six months to the end of June.

Renishaw's shares plunged 37¾ to 281¾p as the company said monthly sales had continued to decline and it had made a loss in both January and Februay.

"Sales of measuring equipment are particularly affected by the demand for capital goods in industries such as automotive, which are unlikely to recover in the near term," Renishaw said.

The engineer proposed extending the 20pc pay cut "until further notice" in a move it said would save £4.5m this year. Staff had initially agreed to the "voluntary reduction" for a period of 13 weeks.

Renishaw said it expected the restructuring to generate annual pre-tax savings of £20m from July this year at a one-off cost of £8m.

Chairman and chief executive Sir David McMurtry said the company had been forced to take "decisive action to reduce our cost base" in the wake of an "unprecedented slowdown in customer demand for measuring equipment".

Renishaw is the latest company to cut pay to help reduce costs. Manufacturing group JCB persuaded staff to accept a £50-a-week pay cut last November, but later cut 500 jobs as trading conditions deteriorated."

[sleveen] 17/3/2009 17:22

If we had more companies like RSW we would kick Germany, Japan et al up the backside, unfortunately the market for capital goods is somewhat reduced and RSW and probably Oxford Instruments and Spectris might well be suffering the consequences: all IMHO and DYOR

[richaims] 17/3/2009 16:03

From The Times March 12, 2009

"We are in trouble by any calibration

David Wighton: Business Editor's commentary


If only Britain had not become so dependent on financial services and if only we had not let the manufacturing base crumble, we would be in a much stronger position now. Or would we?

Take a look at Renishaw. When pundits bemoan Britain's lack of world-class engineering businesses, Renishaw is exactly the sort of company they are thinking of.

Based in idyllic Wotton-under-Edge in Gloucestershire, Renishaw is, by any measure, one of Britain's most successful companies. It is a world leader in high-tech measuring equipment, used by carmakers, aircraft manufacturers and brain surgeons. It pours huge sums into R&D and manufacturing - both done in-house- and has 1,400 of its 2,240 staff in the UK, even though more than 90 per cent of its sales are overseas. It is financially conservative, with cash in the bank and last year increased profits by a quarter to £42 million on sales of £200 million.

Now, just a few months later, it is in crisis. Yesterday it warned that it would make a £10 million loss in the six months to June, even after agreeing a 20 per cent voluntary reduction in pay last month. It is consulting staff about up to 500 redundancies, almost a quarter of its headcount. Sir David McMurtry, its founder and chief executive, says it has not come close to this bad in the company's 30-year history.

Car manufacturers have abruptly switched off their capital investment, so Renishaw's orders have collapsed. Sir David has no idea when they will recover but can only assume it will not be soon.

Arguably, there has been just as much of a bubble in manufacturing as in financial services in recent years. Renishaw's sales were indirectly buoyed by the boom in Western consumer spending, as we borrowed against our homes to buy new cars. Now that the bubble has burst, it is extremely painful. Renishaw has a much higher fixed-cost base than, say, an insurance company, so a fall in sales can quickly push it into heavy losses.

Demand for manufactured goods has fallen faster than demand for the sort of high-value services, such as insurance, in which Britain is so strong. And there is no reason to think that manufacturing will recover first.

Of course, it would be great if Britain had more Renishaws. But it is by no means clear that Britain would be better placed to ride out this crisis if the economy was more like Germany's or Japan's"

[richaims] 15/3/2009 15:34

Chart looks grim.

Might the shares bounce or are there more falls to come ?

[philo124] 13/3/2009 20:32

Sadly, this morning i sold, saw 2 broker notes- what do they know?- but this trading update is scary not just for RSW but re the market generally.
If the market rises again on Monday i am buying back my June shorts which i sold last Monday.

[dennis russell] 13/3/2009 17:24

Dear backward freddy, whether RSW will make it or not will depend on cashflow - have you looked?

[chrisgail] 12/3/2009 21:47

ydderf 2 Directors own over 50% of the shares so no bid from anyone.

[sleveen] 12/3/2009 19:01

not sure I agree with ydderf..... but I do expect a further warning...that said it just goes to show how highly regarded RSW are to be actually up on the day after a second profits warning is announced

[ydderf] 12/3/2009 17:18

shareholders will never see any recovery fruits, after the next profit warning it will be a sitting duck for a cheap usd bid - why wait for a shafting? It will take three years to get moving again - they won't make it imho.

[chrisgail] 11/3/2009 21:03

Head Count last annual report 2,143 staff reduction of 500 this is a staggering amount. Reni are a class company and they will come through it, but another bitter blow to manufacturing in Britian.

[philo124] 11/3/2009 19:09

This statement is a good indication what is happening in the real world outside banks and commities; more to come and why the Ftse will fall below 3300
within 3 months. Class company all the same.

[9degrees] 11/3/2009 19:04

But boys by the end of the day a good reccovery from the days lows

[bigboyo] 11/3/2009 10:12

Both Kiwi and Gnome are correct :-)

Kiwi is right that this is a class coompany

Gnome is right that warnings usually come in threes and share price may fall more

As someone who has had a beady eye on this company I will not be putting my cash down on the table yet --- but when it reaches my targetr price I will be well in ---

Why ? because with any upturn this company will be one of the surivors and the share price will recover and recover quick

[lord gnome] 11/3/2009 09:11

Profit warnings always come in threes kiwihope. Let's see what's left after the third warning.

[kiwihope] 11/3/2009 09:09

This is a class company but there will probably be better times to buy. Wouldn't leave it too late tho' as when they recover they will do so quickly ...

[lord gnome] 11/3/2009 08:47

So there we have it. The second profit warning and another precipitous dive in the share price The trading update is really nasty as well - honest, but nasty. I am leaving these well alone for now - off the radar. Good luck to any who continue to hold, but judging from the lack of action on this BB I doubt that there are many around.

[dennis russell] 09/2/2009 21:14

settling litigation is usually good news! The first few months of a downturn produce the sharpest cutbacks in capital orders - after that the price advantage of lower sterling might kick in

[lord gnome] 02/2/2009 16:49

I agree 9degrees - but the share price is still going to go below 300. Nasty tail off at close of play today. Still no reason to buy.

[9degrees] 02/2/2009 16:22

Good letter in times today praising directors for giving up rights to their dividends £3m.One of Uks best engineering cos

[sleveen] 29/1/2009 14:23

bigboyo: I seem to remember that RSW has ststed that it has about 3 months visibility on orders.

According to yesterday's news the global recession could be the worst since WW2 with the UK suffering the most. Capex will be culled which is bound to affect RSW (excluding medical sales). Perhaps I was overly pessimistic with the 200p forecast but i still beleive RSW has further to fall.

GL

[bigboyo] 28/1/2009 11:19

for VERY long term investors --- profit warnings aften come one after the other and the results give little guidance on CURRENT order intakes and full year outcome

with so little visibility there can be no premium irrespective of past glories

[lord gnome] 28/1/2009 08:26

After you.....

[chase] 28/1/2009 07:45

based on results, nice buying opportunity for long-term investors