Trading Update

Bodycote International PLC
24 October 2007





                           BODYCOTE INTERNATIONAL PLC



                        TRADING UPDATE - 24 OCTOBER 2007



Bodycote International plc, the specialist thermal processing and testing
services company, is today hosting an investor day and strategy update.  The
Group is pleased to report good performance through the third quarter of 2007.



HIGHLIGHTS



•         Revenues (at constant exchange rates) increased by 19%
•         Organic revenue growth (in local currency) in Testing Strategic
          Business Unit (SBU) of 10%
•         Organic revenue growth (in local currency) in Thermal Processing SBU
          of 6.5%



GROUP



At the time of the interim results announcement, we reported that sales in the
first half of 2007, for continuing operations were 14% higher than 2006 at
£317.6m (19% at constant exchange rates) and headline operating profit 1 was
£48.2m compared to £40.6m in 2006, an increase of 19%.



Sales growth for the nine months to the end of September (at constant exchange
rates) was 18.7%, of which 7.3% was organic and 11.4% was from acquisitions.



As a result of the impact of exchange rates (primarily the weakness of the US
dollar) on currency translation YTD, sales in sterling terms have to date been
reduced by 3.6% compared with the same period last year.  If exchange rates
remain at the current level, the impact will moderate as the year progresses,
with the annual impact on sales and operating profit expected to be c. 3%.



1  excluding impairment of goodwill and equity investments, amortisation of
acquired intangibles, major facility closure costs and interest and tax on
associates.



STRATEGIC BUSINESS UNIT (SBU) OVERVIEW



Heat Treatment sales in local currency are cumulatively running 15.2% ahead of
the same period last year, of which 5.5% is organic.  Aerospace, power
generation and oil & gas demand remains robust in all territories, and
automotive sales have strengthened in Continental Europe although North America
is soft.  Turnover has increased in all geographies except North America, where
growth has been temporarily affected by the previously announced closure of two
facilities and soft economic conditions in the mid west region.



Hot Isostatic Pressing is maintaining its excellent performance, with organic
sales growth of 16% (in local currency) compared to 2006 as a result of
continued strong demand for aerospace, industrial gas turbine and oil & gas
components.



Sales in the Testing SBU are 29% higher than for the same period last year in
local currency with organic sales growth of 10%. Oil & Gas, Aerospace, Defence
and Construction markets continue to be strong with our Materials & Engineering
Technology businesses benefiting.  There was some slow down in North American
markets, particularly in the automotive sector, which has been exacerbated by
the weakness of the US dollar reducing the competitiveness of our larger
Canadian business.  As a result we have decided to rationalise the number of
laboratories focused on this sector.



In Health Science and Environmental division, margins were under pressure and
the Canadian business had some seasonal issues.  Whilst the Canadian business
has not caught up the lower quarter two sales, operational efficiencies are now
driving improvement in food testing margins.



The development of the Testing SBU continues to gain momentum with eleven
greenfield start ups in the process of commissioning which will drive organic
growth coupled with several acquisitions nearing completion.



OUTLOOK



The Board expects all markets in which the Group operates to remain buoyant,
except for automotive where, whilst Europe is improving, North America continues
to be muted.  Acquisitions completed in 2007 to date are expected to contribute
approximately £9m of sales in 2008.  A further 9 acquisitions are at various
stages of evaluation and negotiation, and, as set out in our preliminary
results, we expect 2007 acquisition spend to be in the range of £50 - 60m with a
significant ongoing pipeline.



INVESTOR DAY



Bodycote is hosting an investor day in North West England today and the
presentations will be available on the company website from noon pm today.



A pre year end update will be announced week commencing 17 December 2007.



For further information, please contact:


Bodycote International plc                         Tel No: [phone]
John D. Hubbard, Chief Executive
David Landless, Group Finance Director

Financial Dynamics                                 Tel No:  [phone]
Jon Simmons
James Ottignon






                      This information is provided by RNS
            The company news service from the London Stock Exchange