Bodycote posts mixed Q1 results as exchange rates hurt automotive revenues

23rd Apr 2015 08:42

Industrial materials engineer Bodycote enjoyed strong revenues in its aerospace division during the first quarter of the year, despite a decline in general industrial turnover due to weak agricultural equipment demand.The group's revenues were down 0.9% to £151.6m during the period, but were up 1.9% at constant exchange rates.Despite an increase in revenues at its aerospace, defence and energy division by 3.2%, the automotive and general industrial business revenues fell 3.9% during the first three month of the year.Bodycote enjoyed a 6.2% increase in car and light truck thanks to strong growth in the US and the emerging markets.Weak agricultural equipment demand and the decline in ethanol demand drove general industrial revenues down by 2.4%.Looking ahead, the group said: "While noting that the group has limited forward visibility, given the performance in the first quarter of 2015, the board's expectation is unchanged."N+1 Singer analysts said: "While Bodycote has reported like-for-like sales growth for Q1, the level is a little below our assumption of 2.8% for 2015, due primarily to lower growth from AGI. With a fairly subdued industrial backdrop and some tougher quarterly comparatives later in the year, we anticipate trimming our forecasts slightly. Our recommendation remains Hold."Shares were up 1.06% to 714.5p on Thursday at 09:20.