Bodycote has issued a trading update covering the period from 1 July to 31 October 2016. During that time, group revenue was reportedly 12.7% higher than the same period last year and 3.1% lower at constant exchange rates, against somewhat weak comparables.
Several new sites were acquired in the period with annualised sales of £14 million. The contribution to full year 2016 EPS from the new businesses will be minimal while they are integrated into the group, Bodycote says. Revenues were 13.2% higher (2.7% lower at constant exchange rates) after excluding revenues accrued in the same period last year in businesses subsequently sold or closed, most notably the hroup’s former operations in Brazil.
Aerospace, Defence & Energy revenues were 10.0% higher (4.2% lower at constant exchange rates) and Automotive & General Industrial revenues were 14.7% higher (2.2% lower at constant exchange rates).
Aerospace revenues grew 2.5% with higher levels of growth in Europe partly offset by weaker revenues in the USA. Ongoing weak demand in Oil & Gas led to sector revenues nearly halving when compared to the equivalent period of last year. The run rate appears to have stabilised at approximately £20 million (at current exchange rates) being 3% of group revenues, according to the company.
Challenging conditions
Car and light truck revenues increased 3.8%, as Bodycote continued to benefit from its investment in new capacity, particularly in North America. Heavy truck revenues declined 14.9%. and global general industrial demand remained on the trend seen over the last eighteen months as it continued to be impacted by the ongoing weakness in a wide range of industrial sectors. Revenues declined 2.2%.
‘The board’s guidance for full year 2016 headline operating profit remains unchanged from the time of the interim results,’ the company said in a press release. ‘Market conditions remain challenging and, while noting the group’s short forward visibility, the board does not anticipate any near term changes in demand patterns in any of the major market sectors that the group serves.’
This story is reprinted from material from Bodycote,with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
