Bodycote Swings To 1H Profit; Confident Despite Uncertainty

28th Jul 2010 09:33

LONDON (Dow Jones)--Engineer Bodycote PLC (BOY.LN) Wednesday said it swung back to profit in the first six months of 2010 due to a rise in sales and because year-earlier costs weren't repeated. Bodycote, which specializes in heat treatment to improve the wear resistance of metals, said it expects sales in the second half of the year to be lower than in the first six months due to the normal summer lull in orders. Demand remains uncertain and uneven but Bodycote said it is benefiting from cost savings and a steady improvement in demand for its products and services. Earlier this month, it said 2010 operating profit before items would exceed market expectations. Bodycote reported a pretax profit of GBP19.1 million for the six months to June 30, compared with a loss of GBP53.1 million a year earlier. Revenue increased 8% to GBP246.3 million. A rebound in demand from customers in the automotive and industrial sectors offset a decline in sales in aerospace, defense and energy. An impairment charge of GBP28.6 million and the costs of closing factories weighed on the previous year's earnings. Bodycote maintained its dividend at 2.95 pence a share but said it will bring the payment forward to November from January 2011. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 28, 2010 04:33 ET (08:33 GMT)