Pre-close trading update

PRE-CLOSE TRADING UPDATE 13 December 2005 Bodycote International plc, the leading materials services company, is issuing this regular trading update prior to entering the close period ahead of its full year results for the year ending 31 December 2005. HIGHLIGHTS The Board expects to announce full-year sales and operating profit in line with the consensus of analysts' forecasts for the Group. Sales growth for the year to date (at constant exchange rates) has been 9%, of which 4% is from acquisitions and 5% is organic. Acquisitions completed during the year are expected to contribute approximately £18m in sales in 2005 and £ 32m in a full year. Energy costs have continued to increase and are being largely passed on to customers, although the recovery lag is typically several months. The execution of the Group's strategy of expanding the Testing business and to widen the geographic coverage of Heat Treatment and HIP remains firmly on track. GROUP At the time of the interim results announcement we reported that first half sales, for the continuing business at constant exchange rates, were 8% higher than in the same period last year at £229.3m and operating profit (excluding impairment of goodwill and restructuring costs) was ₤29.2m compared to ₤22.3m in the first half of 2004, an increase of 31%. Organic growth in the second half has been almost 5% compared to approximately 6% in the first half, with the reduction primarily due to softer than expected demand from continental European automotive customers. Demand from the aerospace, power generation, oil & gas and health science sectors are buoyant but prospects for the automotive sector remain uncertain. The most notable increases in energy costs have been in North America, in the immediate aftermath of the two Gulf Coast hurricanes, where prices are still 60% above pre hurricane levels, and in the UK, where wholesale gas prices have increased significantly. These cost increases continue to be largely passed on to customers although recovery often lags by several months. We continue to progress the geographic expansion of the Group's network of facilities. Three bolt-on acquisitions have been completed since the interim results announcement. Two are Testing laboratories namely Food Products Laboratory Inc, in Portland, Oregon USA, which complements our UK and Canadian food testing businesses, and Arthur Gordon Environmental Evaluators Limited based in Montreal, Canada, who carry out continuous monitoring of emissions for customers in the paper, metallurgy and petrochemical industries and supports Bodycote's existing stack sampling business in Quebec City. The Group has also acquired the heat treatment operations of UTTIS Industries SA, which have been combined with our existing business in Romania. A number of other potential acquisitions are at various stages of evaluation and negotiation and several of these are expected to complete early in the New Year. The impact of exchange rates on currency translation of the Group's sales and profits has been immaterial. Cash generation remains strong as a result of continued tight control of capital expenditure, and the ongoing focus on working capital management. STRATEGIC BUSINESS UNIT (SBU) OVERVIEW Heat Treatment sales in local currency are cumulatively running more than 6% ahead of last year, of which three quarters is organic and operating profit is up 14%. Turnover has increased in all geographies, although slower automotive demand has held back Germany and France. Product mix in North America and France together with energy cost increases in most countries remain the biggest challenges in improving profitability. Metallurgical Coatings is performing satisfactorily. Testing continues to be the best performing SBU with sales, at constant exchange rates, 28% up on last year of which 9% is organic and 19% from acquisitions, but operating margins, as anticipated, are slightly lower and in line with the first half. The division has recorded strong organic growth in all regions, but with the benefit of acquisitions, total sales increase has been largest in the UK and continental Europe. Hot Isostatic Pressing is maintaining its improved performance, with sales more than 8% (in local currency) higher year to date than 2004, as a result of strong demand for aerospace and industrial gas turbine components together with our Densal® programme for high performance automotive castings. The Preliminary Results will be announced on 28 February 2006. An investor and analyst conference call is taking place today, 13 December, at 10:00 hours (GMT). The dial-in number is +44 (0) 845 146 2010 password is Bodycote For further information, please contact: Bodycote International plc Tel No: +44 (0)1625 505300 John D. Hubbard, Chief Executive David Landless, Group Finance Director Financial Dynamics Tel No: +44 (0) 20 7831 3113 Jon Simmons Sally Lewis

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