Bodycote Q1 revenue drops 2.2 per cent as expected

29th Apr 2014 07:50

- YOY fall in Q1 revenue of 2.2 per cent - Up 2.8 per cent at constant exchange rates- Outlook for 2014 unchangedBodycote on Tuesday reported that group revenue in the first quarter was 2.2 per cent lower year-on-year (YOY) at actual exchange rates, as previously anticipated. The group, which specialises in plasma spray, high velocity oxy fuel and thermally formed ceramic treatment, said that at constant exchange rates the figure rose 2.8% to £153m. Looking ahead to the rest of the year, Bodycote still expects its growth initiatives to deliver further progress in 2014.The Aerospace, Defence & Energy business reported constant currency revenue growth of 1.4% compared to the first quarter of 2013, but said at constant exchange rates, Aerospace and Defence revenue was lower by 0.7%. Although civil aviation demand was unchanged YOY, defence revenue fell by 2.3%, reflecting the continued reduction in military budgets. Revenues in Oil & Gas were up by 1.9% on a constant currency basis, while demand from the North American onshore sector continued to be flat. Sales in the Industrial Gas Turbine sector continued the improvement seen in 2013 and constant currency revenues were ahead of the same period last year by 9.3%. Meanwhile, the Automotive & General Industrial business delivered a revenue increase of 3.9% at constant exchange rates, driven by sales in Western Europe, which were ahead by 5.6%. North American revenues declined 1.2%, also at constant exchange rates. Car & light truck revenues grew well in all territories, the group said, but admitted heavy truck demand continued to be "weak". General industrial demand improved although growth was stronger in Western Europe than in North America. Emerging Market revenues grew by 4.5% at constant exchange rates, it added. The group's net cash at the end of March totalled £12.4m, down from £15.0m at December 31st, in line with the usual seasonal pattern. NR