Bodycote sees improved performance, mixed markets

19th Nov 2013 09:05

- Europe and North America economic conditions still muted- Improved performance, confident for full-year- Mixed performance across territories, divisionsBodycote said although economic growth in both Europe and North America continues to be muted, its organic performance is improving and is confident of meeting full-year expectations.The world's largest thermal processing services provider reported revenue growth of 6.9% for the four months from July 1st to October 31st or 3.6% at constant exchange rates. It booked an organic decline of 1.3%, with acquisitions adding 4.9%.Sales in the Aerospace, Defence and Energy (ADE) business slipped 0.2% and fell 2.6% at constant exchange rates. At constant exchange rates, sales in Western Europe declined by 1.4% and in North America by 4.0%. Commercial aerospace revenues rose in both North America and Europe, and industrial gas turbine sales increased in all territories. However, continued lower demand from the Oil & Gas sector, particularly for onshore requirements in the US, and reduced revenues in the defence sector which together have more than offset gains elsewhere, it explained.Revenues in the Automotive and General Industrial (AGI) business advanced 12.9% or 8.9% at constant exchange rates. Acquisitions added 9.1% and organic sales were lower by 0.2%. Car & light truck revenues grew in both North America and Europe and at a higher rate than in the first half. Heavy truck sales have turned positive in Europe, but remain very weak in North America. In contrast, General industrial demand remained weak, especially in the mining and construction equipment sectors in North America. Emerging market sales grew modestly.Net borrowings at October 31st were £4.4m, compared to £27.1m at June 30th.Shares of Bodycote fell 1.97% to 635.25p at 09:00 in London. CJ