Recasts lede, adds details on outlook and background
July 17 (Reuters) - Engineering group Renishaw Plc RSW.L raised its annual revenue forecast on Friday, sending its shares to their highest in more than a year, although restructuring costs prompted the British company to downgrade the profit estimate.
In a brief trading update, the company said it now expects revenue to come in at 510 million pounds ($640.25 million), up from an earlier forecast of 490 million-505 million pounds. Renishaw had reported revenue of 574 million pounds in 2019.
The company, which makes precision measurement equipment used in products ranging from jet engines to smartphones, has been struggling with the coronavirus-induced downturn in the automotive and aerospace sectors after three quarters marred by the Sino-U.S. trade spat.
Renishaw, which cancelled its dividend last month, said annual statutory pretax profit was expected to come in at 4 million pounds, compared with an earlier forecast of 31 million-41 million pounds.
It expects to incur costs of 24 million pounds related to restructuring at its metal additive manufacturing business, which caters to a range of sectors including original equipment manufacturers.
The British firm said another 22 million pounds related to fair value losses was expected to hit its profit.
Shares in the company, which is part of a consortium to produce ventilators to help the National Health Service cope with the coronavirus outbreak, were up 3% at their highest since February 2019, as of 0745 GMT.
($1 = 0.7966 pounds)
(Reporting by Yadarisa Shabong in Bengaluru, Editing by Sherry Jacob-Phillips)