Bodycote lifts profits guidance

13th Oct 2010 07:30

Headline operating profit this year at metallurgical coatings specialist Bodycote is set to be at the upper end of the range of City forecasts.The company said the range of forecasts for headline operating profit spans from £40.0m to £49.0m, with an average of £42.5m.Revenues for the nine months to 30 September 2010, at constant exchange rates, were 13.3% higher than the same period in 2009. At actual exchange rates, revenues were 13.0% higher than in the same period last year.The board expects sales in the final quarter will continue at roughly the same level seen in the third quarter, which would mean second half sales more or less matching the first half. In Automotive & General Industrial, the group is still benefitting from much higher sales to car and light truck customers and during the third quarter revenues from heavy truck businesses increased strongly, recovering from a slow start to he year.Sales to general industrial customers have continued to increase, accelerating somewhat during the third quarter, the company said.In Aerospace, Defence & Energy, sales to the aerospace and defence sectors saw some pick-up towards the end of third quarter, as improved requirements for maintenance and repair added to the modest growth that has been evident throughout 2010 from original equipment manufacturers. Industrial gas turbine revenues have stabilised but remain at low levels. Sales to oil and gas customers continue to be solid.The group continues to derive benefit from its restructuring programme, with group margins on the increase, though increased demand has also helped in this respect. Net borrowing at 30 September was £72.5m, compared to £87.5m at 30 June, reflecting the improved trading performance and normal seasonal cash flows.