Interim Management Statement

RNS Number : 2692R

Bodycote PLC

16 November 2012

 



BODYCOTE PLC

INTERIM MANAGEMENT STATEMENT

16 NOVEMBER 2012

Bodycote is issuing its interim management statement covering the period from 1 July to 15 November 2012. The financial and operational data set out below relates to the four months from 1 July to 31 October 2012 (the "period") unless otherwise stated.  All comparative comments in this statement reflect comparisons with the corresponding period in 2011.

CURRENT TRADING

Reported revenue growth for the period was 2.9% (7.6% at constant exchange rates, of which organic growth accounted for 2.6% and 5.0% came from acquisitions).

Sales in Aerospace, Defence and Energy were ahead by 14.4% (15.9% at constant exchange rates), with organic growth at 10.4% and acquisitions added 5.5%. At constant exchange rates sales in Western Europe improved by 14.2%, all of which was organic. In North America, revenues, at constant exchange rates, grew 17.5% of which organic growth accounted for 7.1% and acquisitions 10.4%. Revenues from the commercial aerospace sector showed further growth, driven by increases in OEM production. The defence sector remained stable. Sales into oil and gas customers continued to improve. Industrial gas turbine demand was good in North America but remained subdued in Europe.

Automotive and General Industrial revenues were lower by 5.2% but at constant exchange rates were ahead 1.8%, with organic sales lower by 2.9%. In Western Europe sales at constant exchange rates were down by 2.9%. There were no acquisitions in the period. In contrast North America increased organic revenues, at constant exchange rates, by 6.5% and acquisitions added a further 32.2%. Emerging market revenues were weak in all territories. In Automotive and General Industrial, car, light and heavy truck sales exhibited modest growth in North America and remained soft in continental Europe. General Industrial revenues showed small improvements in all territories.

ACQUISITION

On 15 October, Bodycote acquired the business of Carolina Commercial Heat Treating, comprising six facilities in the South Eastern USA, together with an additional facility in Southern Indiana for a total cash consideration of US$67.4 million. The majority of the business serves the general industrial hinterland of the Carolinas, Georgia, Alabama and Tennessee, including some key customers in off-road vehicle and heavy truck manufacturing  and a growing presence in aerospace and energy markets (c.15% of sales). Sales to the car and light truck sectors represents some 23% of the business.  This acquisition represents a considerable step forward in the delivery of Bodycote's strategy in North America. 

FINANCIAL POSITION

Net borrowing at 31 October was £33.7m, compared to £16.7m at 30 June 2012, reflecting the trading performance outlined above, normal seasonal cashflows and the acquisition costs of Carolina Commercial Heat Treating.

OUTLOOK

Although trading remains volatile, the sales momentum we have seen in October and early November offers support for the remainder of 2012 and consequently the Board's expectations for the year to 31 December 2012 are unchanged.

Investor Conference Call

Stephen Harris and David Landless will be hosting a conference call for analysts and investors at 0800 hours today (16 November 2012).

Participant's Dial In Number: [phone]     

Participants will be asked for names only, no PIN required

About Bodycote

With more than 175 accredited facilities in 27 countries, Bodycote is the world's largest provider of thermal processing services. Through heat treatment, metal joining, surface technology and Hot Isostatic Pressing (HIP), Bodycote improves the properties of metals and alloys, extending the life of vital components for a wide range of industries, including aerospace, defence, automotive, power generation, oil & gas, construction, medical and transportation. Customers in all of these industries have entrusted their products to Bodycote's care for more than 30 years. For more information, visit www.bodycote.com.

For further information, please contact:

Bodycote plc
Stephen Harris, Chief Executive	[phone]
David Landless, Group Finance Director	[phone]
FTI Consulting
Richard Mountain	[phone]
Susanne Yule	[phone]

The Interim Management Statement, issued in accordance with the EU Disclosure and Transparency Directive, may contain forward-looking statements which:

  * Have been made by the directors in good faith based on the information

    available to them up to the time of their approval of this statement; and

  * Should be treated with caution due to the inherent uncertainties, which

    are beyond the Board's ability to control or estimate precisely and include

    both economic and business risk factors, underlying such forward looking

    information.

ENDS

 

END

 

 

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