Trading Statement

Bodycote International PLC 18 December 2007 18 DECEMBER 2007 BODYCOTE INTERNATIONAL PLC TRADING UPDATE Bodycote International PLC is issuing this update prior to entering its close period on 31 December 2007. TRADING Sales growth for the year to date (at constant exchange rates) has been 18% of which 8% is organic and a further 10% is from acquisitions. Actual sales growth has been 15%, with the difference principally due to the weakness of the US dollar. Aerospace, power generation and oil & gas demand remains robust in all territories and automotive sales have continued to be buoyant in Europe. Thermal Processing turnover has increased 15%1 (7% organic). Europe continues to be robust. North America has been temporarily affected by the previously announced closure of two large and several smaller facilities. The exceptional cost of closing and remediating these facilities has increased by £3m. Margin development continues to meet expectations even after incurring the start-up costs at our greenfield facilities in China, India and Mexico. In Testing, sales have increased 26% 1 (10% organic) in line with our growth strategy. Margins have been impacted by start-up costs at a number of new facilities in Singapore, the Middle East and Mexico. In response to continuing softer trading conditions in North America, we have taken a number of actions to streamline the business including senior management changes, the closure of certain testing activities in Canada and rationalising our eight automotive testing facilities into a single centre of excellence in Detroit. The total exceptional cost of all this reorganisation is expected to be £2m, with a payback in less than two years. Cash flow performance continues to be satisfactory and the net finance charge will be slightly lower than in 2006. The Board expects to announce that full year sales and headline operating profit 2 will be within the range of market forecasts. 1 at constant exchange rates 2 excluding impairment of goodwill and equity investments, amortisation of acquired intangibles, major facility closure costs and interest and tax on associates. OUTLOOK Our key aerospace, power generation and oil & gas sector customers are forecasting buoyant conditions for 2008. Despite continuing softness in the North American automotive market, the Board remains confident that the Group will make further progress towards its strategic objectives in the coming year. Preliminary results will be announced on 26 February 2008 Telephone conference at 0900 hours GMT: Dial-in number is +44 (0) 1452 569 393. Call reference, if there are any problems, is 28295745 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 James Ottignon This information is provided by RNS The company news service from the London Stock Exchange

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