Bodycote warns of operating loss

10th Jul 2009 07:02

Bodycote was downbeat Friday as the engineering firm said half-year revenue fell by a fifth and warned of a marginal operating loss before exceptional items.A weak automotive sector and continuing decline in demand from the oil and gas industry has cut revenue for the six months to 30 June 2009 by 20%, or 31% on a constant currency basis.If demand remains at such depressed levels, Bodycote expects full-year results to be "materially below" the market consensus for earnings before interest and tax (EBIT) of £24m."As a consequence of our short order book and continuing uncertainty in market conditions visibility is very limited," the group explained. As at June 30 net borrowings stood at £89m.Interim numbers are due on 29 July.