(Reuters) -Nanotechnology tools maker Oxford Instruments on Monday warned its annual revenue and adjusted operating profit would be broadly flat year-on-year, weighed down by economic uncertainty and tariff disruptions, sending shares nearly 14% lower.
Order intake at Imaging & Analysis (I&A), its biggest division accounting for two-thirds of sales and most of profits, fell 6% in the first half on an organic constant currency basis, the company said, as customers delayed purchases amid shifting U.S. tariff policies.
While the company successfully repriced orders to mitigate the impact, the falling orders are expected to drag the group’s total first-half revenue 10% lower on a reported basis, with adjusted operating profit margins of 13.5%.
First-half revenue in its Advanced Technologies segment is expected to drop 8% on a reported basis, as tariffs delayed shipments from China – a critical supplier of rare earth minerals used by the company – and deferred some deliveries, even as orders surged 25% on semiconductor demand.
The company’s stock, which has lost over 20% of its value so far this year, was leading losses on the FTSE mid-caps index by 0807 GMT.
The Oxfordshire, United Kingdom-based company said it is adapting its manufacturing and supply footprint, including the supply of rare earth materials, to offset any further disruption from tariff policies without giving details.
It added it has already implemented cost-cutting measures – including workforce reductions at its Belfast imaging unit – to boost second-half margins, streamlined its product portfolio, and renewed focus on key original equipment manufacturer partnerships.
J.P. Morgan analysts said that while the outlook downgrade was disappointing, the order momentum is encouraging and it suggests the worst of the I&A pressure is in the past.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)
