Renishaw plc (RSW) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Renishaw's results presentation for the first half of financial year 2024. I'm William Lee, Chief Executive, and I'm joined today by Adam Roberts, our Group Finance Director. I'm going to start by taking us through a review of business performance for the first half of the year. I'm pleased to report another solid performance overall in challenging trading conditions. We had a revenue reduction of 5%, but some of this is due to currency headwinds. If you look at constant currency, revenues were only 2% lower. When we start to look at the segments, then actually in manufacturing technologies, revenues were down 6% overall. If we look at what's making this up, then what we saw here was solid growth in industrial metrology, most noticeably really pleasing in our Equator flexible gauges and our machine tool product lines. We are continuing to see weak demand from the semiconductor equipment sector. This has been stable for the last six months, but is below the previous year. In the analytical instruments and medical devices segment, it was very pleasing to see 16% growth. This was really driven by our Raman spectroscopy business. If we look at regional performance, then it was pleasing to see a return to growth in the APAC region, which delivers 6% growth at constant currency, underpinned by strong growth in industrial metrology, especially into the consumer electronics sector. However, this is the region where many of our semiconductor equipment builder customers are located and continued weak demand in this sector does remain a drag on growth. Conditions in the AMA have been tougher and revenues were down 6% at constant currency. Spectroscopy was a positive, but this was more than offset by continued low demand for position encoders and also weaker demand in...