Bodycote International PLC
20 November 2002
Date: Embargoed until 07.00am, 20 November 2002
Bodycote International plc
TRADING UPDATE AND ACQUISITIONS
At the time of the interim results we announced that sales had begun to
stabilise albeit at a lower level than 2001 and that it was unlikely that there
would be an upward movement in demand in the near term. In August and September
sales were worse than expected. Sales for the final quarter of the year are
likely to be similar to last year's levels. Accordingly the Board now
anticipates that the outcome for the year will be around the bottom end of
market expectations.
Our Materials Testing Group has been the best performing of our Strategic
Business Units ('SBUs') with sales ahead of the 2001 levels, largely due to
solid North American automotive and European oil & gas business. The trading
environment for our other SBUs remains challenging in all geographic areas and
most end markets.
We remain confident that the rationalisation measures announced earlier in the
year will put us in a strong position to benefit from any improvements in our
markets. These measures have now largely been implemented although the benefits
are currently being offset by weakness in sales.
Further rationalisation measures to improve return on invested capital may be
required should there be no improvement in sales.
We are also pleased to announce two modest but important acquisitions in the
industrial heartland of Italy for a total cost of £8m for £11m of sales - the
materials testing business, Centro Triveneto Ricerche Srl (CTR) based in Padua,
will extend the reach of Bodycote Material Testing Milan and the Gamma heat
treatment group which operates from three sites in the Brescia area complements
our highly successful Gorgonzola plant.
Enquiries to:
David Landless, Group Finance Director
Bodycote International PLC Tel: 01625 505 300
Jon Simmons / Meg Baker Tel: 020 7831 3113
Financial Dynamics
This information is provided by RNS
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