US tariffs weigh heavily on Oxford Instruments

(Sharecast News) - Oxford Instruments confirmed a fall in first-half revenues on Monday, sending shares in the specialist technology firm sharply lower, after it was hit hard by US tariffs. Updating on interim trading, the British business - which provides academic and commercial customers with a range of scientific technology and expertise - said revenues were set to come in around 10% lower, or by 8% on a constant currency basis.

In the group's Imaging and Analysis unit, orders slumped 11% in the first quarter and were flat in the second.

Oxford said it had re-priced the majority of US open order book to mitigate the impact of tariffs during the first quarter. But order intake had been hit by customers delaying spend in response to the "shifting" global trade environment and subsequent uncertainty.

As a result, divisional revenues tumbled nearly 11% on a reported basis.

In Advanced Technologies, its semiconductor arm, the order intake surged 25% in the first quarter and 26% in the second.

But revenues were forecast to be around 8% lower, due to tariff-related delays in shipments to China from its US-based X-Ray business and the postponement of delivering of a limited number of high value compound semiconductor systems into the third quarter.

As a result, the firm said it now expected full-year group revenues, adjusted operating profits and the margin to be similar to the previous year.

Shares in the FTSE 250 firm fell heavily as trading got underway, losing 8% at 1,816p.

Richard Tyson, chief executive, said: "The start of our financial year coincided with the beginning of a turbulent time in our markets.

"I am proud of our team's proactive and customer-focused approach to this very dynamic global trading landscape, driving an improving picture in the second quarter, albeit we are now assuming that we will not recover the first half revenue shortfall.

"While the macro picture continues to be fluid, the agility of our teams, in combination with the strategic actions we have taken, gives us the confidence in delivering progress in second half."