Bodycote swings to a profit in 2010

24th Feb 2011 13:45

Bodycote swung into the black in 2010 with estimate-beating profits, but investors were underwhelmed and the shares dropped.The metallurgical coatings specialist reported a pre-tax profit of £45.2m for the 12 months ended December, compared with a loss of £54.5m in 2009. Full-year profits surpassed the £41.1m finnCap had predicted after Bodycote raised profit guidance at the end of the third quarter. Basic earnings per share rose to 14.9p, from a loss per share of 27p.Group revenue grew 14.8% to £499.8m, from £435.4m previously, underpinned by the success of the restructuring programme announced in 2008.The AGI division increased revenues by 21.1% to £297.7m in 2010, as demand increased from its automotive and heavy truck customers in all geographies. ADE grew by 6.6%. "Better macro economic conditions were an important contributor to this and the underlying ability of the business to deliver consistently superior value has been strengthened considerably," said chief executive Stephen Harris. "Looking at 2011, it is anticipated that automotive and general industrial business will continue to grow at a reasonable pace."The full year dividend goes up to 8.7p from 8.3p.