Bodycote reports 7.5% lower revenue from the period from July to October 2015, compared to the same period in 2014.
Aerospace, Defense and Energy business revenues were lower by 11.9% at constant exchange rates (10.8% lower at actual exchange rates) while the Automotive & General Industrial business saw revenues decrease 4.1% at constant exchange rates (8.8% lower at actual exchange rates).
However, civil aviation revenues grew by 2.1% year-on-year, with good growth in North America and France offset by continued weakness in the UK. Sales in the Oil & Gas sector were lower by 41%.
Car and light truck revenues increased by 3.4%, with flat performance in the USA and solid growth in Europe and the Emerging Markets. Heavy truck revenues were lower by 5.5%. General industrial demand remained subdued, and revenues were 7.9% lower than in the same period last year, being affected notably by weak industrial machinery and agricultural equipment demand.
Bodycote has announced a reorganisation program amounting to £19.9 million (cash cost £12.0 million) including an exit from Brazil. The program is on track to deliver around £6 million of savings in 2016 in addition to the £4 million achieved in the current year.
‘Notwithstanding the continuing challenging market conditions, the board’s expectation for headline operating profit for the year to 31 December 2015 remains in the range £101 million to £106 million,’ the company said.
