Bodycote is today issuing its interim management statement covering the period from 1 July to 12 October 2010. The financial and operational data set out below is in respect of the Group’s third quarter (1 July to 30 September 2010) unless otherwise stated.
Revenues for the nine months to 30 September 2010, at constant exchange rates, were 13.3% higher than the same period in 2009. At actual exchange rates, revenues were 13.0% higher than in the same period last year.
The trends seen in the first half of 2010 have continued with a notable improvement in revenue during the third quarter compared to the same quarter of 2009. This was in contrast to the trends last year when revenues were still declining, quarter on quarter. The impact of customer summer holiday shut-downs in Q3 2010 was less marked than expected.
In Automotive & General Industrial, the Group is still benefitting from much higher sales to car and light truck customers and during Q3, revenues from heavy truck businesses have increased strongly, following a slow start to 2010. Sales to general industrial customers have continued to increase, accelerating somewhat during Q3.
In Aerospace, Defence & Energy, sales to the aerospace and defence sectors saw some pick-up towards the end of Q3, as improved requirements for maintenance and repair added to the modest growth that has been evident throughout 2010 from the OEMs. Industrial gas turbine revenues have stabilised but remain at low levels. Sales to oil and gas customers continue to be solid.
Group margins have increased, reflecting both higher sales levels and the cost cutting measures, which took place mainly in 2009.
Cost savings resulting from the restructuring programme remain in line with the guidance given at the time of the interim results with an annualised saving of £44.5m. With the programme largely complete, this level of savings is not expected to change materially.
The financial position of the Group remains strong. Net borrowing at 30 September was £72.5m, compared to £87.5m at 30 June, reflecting the trading performance outlined above and normal seasonal cashflows.
Looking ahead to the final quarter of the year, we expect sales to remain at a similar level to that witnessed in recent months, which would lead to second half revenues being close to those of the first half of 2010. Consequently, the Board now expects that headline operating profit for the year will be towards the upper end of the range of analysts’ forecasts1
1 Range of analysts’ forecasts for full year headline operating profit (Bloomberg) = £40.0m to £49.0m, with an average of £42.5m.
Stephen Harris and David Landless will be hosting a conference call for analysts and investors at 0830 hours today (13 October 2010)
Participant’s Dial In Number: +44 (0) 20 7906 8535
Participants will be asked for names only, no PIN required
For further information, please contact:
Bodycote plc, Stephen Harris, Chief Executive
Bodycote plc, David Landless, Group Finance Director
Tel No +44 (0) 1625 505300
Financial Dynamics
Jon Simmons, Susanne Yule
Tel No +44 (0) 20 7831 3113
The Interim Management Statement, issued in accordance with the EU Disclosure and Transparency Directive, may contain forward-looking statements which:
* Have been made by the directors in good faith based on the information available to them up to the time of their approval of this statement; and
* Should be treated with caution due to the inherent uncertainities, which are beyond the Board’s ability to control or estimate precisely and include both economic and business risk factors, underlying such forward looking information.
Bodycote is today issuing its interim management statement covering the period from 1 July to 12 October 2010. The financial and operational data set out below is in respect of the Group’s third quarter (1 July to 30 September 2010) unless otherwise stated.
Revenues for the nine months to 30 September 2010, at constant exchange rates, were 13.3% higher than the same period in 2009. At actual exchange rates, revenues were 13.0% higher than in the same period last year.
The trends seen in the first half of 2010 have continued with a notable improvement in revenue during the third quarter compared to the same quarter of 2009. This was in contrast to the trends last year when revenues were still declining, quarter on quarter. The impact of customer summer holiday shut-downs in Q3 2010 was less marked than expected.
In Automotive & General Industrial, the Group is still benefitting from much higher sales to car and light truck customers and during Q3, revenues from heavy truck businesses have increased strongly, following a slow start to 2010. Sales to general industrial customers have continued to increase, accelerating somewhat during Q3.
In Aerospace, Defence & Energy, sales to the aerospace and defence sectors saw some pick-up towards the end of Q3, as improved requirements for maintenance and repair added to the modest growth that has been evident throughout 2010 from the OEMs. Industrial gas turbine revenues have stabilised but remain at low levels. Sales to oil and gas customers continue to be solid.
Group margins have increased, reflecting both higher sales levels and the cost cutting measures, which took place mainly in 2009.
Cost savings resulting from the restructuring programme remain in line with the guidance given at the time of the interim results with an annualised saving of £44.5m. With the programme largely complete, this level of savings is not expected to change materially.
The financial position of the Group remains strong. Net borrowing at 30 September was £72.5m, compared to £87.5m at 30 June, reflecting the trading performance outlined above and normal seasonal cashflows.
Looking ahead to the final quarter of the year, we expect sales to remain at a similar level to that witnessed in recent months, which would lead to second half revenues being close to those of the first half of 2010. Consequently, the Board now expects that headline operating profit for the year will be towards the upper end of the range of analysts’ forecasts1
1 Range of analysts’ forecasts for full year headline operating profit (Bloomberg) = £40.0m to £49.0m, with an average of £42.5m.
Stephen Harris and David Landless will be hosting a conference call for analysts and investors at 0830 hours today (13 October 2010)
Participant’s Dial In Number: +44 (0) 20 7906 8535
Participants will be asked for names only, no PIN required
For further information, please contact:
Bodycote plc, Stephen Harris, Chief Executive
Bodycote plc, David Landless, Group Finance Director
Tel No +44 (0) 1625 505300
Financial Dynamics
Jon Simmons, Susanne Yule
Tel No +44 (0) 20 7831 3113
The Interim Management Statement, issued in accordance with the EU Disclosure and Transparency Directive, may contain forward-looking statements which:
* Have been made by the directors in good faith based on the information available to them up to the time of their approval of this statement; and
* Should be treated with caution due to the inherent uncertainities, which are beyond the Board’s ability to control or estimate precisely and include both economic and business risk factors, underlying such forward looking information.
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