(Reuters) - Precision engineering company Renishaw Plc (L:RSW) cut its full-year revenue and earnings forecasts, citing a lack of large orders from the Far East this year.
Shares in the company fell as much as 15.6 percent to an over three-week low on Thursday on the London Stock Exchange.
Companies globally are feeling the pinch of Chinese economy's slowdown as decelerating growth in factory output, retail sales and domestic investment have been compounded by a slowing manufacturing activity, resulting in lower demand for industrial goods.
Renishaw, which makes machine tool probes and gauges, generates about half of its revenue from the Far East. The company reported a 22.6 percent fall in revenue from China during the half year ended December.
"Revenue last year benefited from a number of large orders in the Far East which have not been repeated to the same extent this year," the company said in a statement.
Renishaw, which had cut its full-year revenue forecast in October, now expects revenue to be around 420 million-440 million pounds for the year ending June 30, down from an earlier range of 440 million-465 million pounds.
Full-year pretax profit is seen around 67 million to 83 million pounds ($94.3-$116.9 million), against its earlier forecast of 85 million to 105 million pounds.
Renishaw shares were down 12.35 percent at 1796 pence at 0847 GMT.