Bodycote on track for end of year

Metals and alloys treatment company Bodycote reassured investors this morning, saying it had enjoyed strong trading in the last four months and was on track to meet full year expectations.

Margins continued to be robust, reflecting higher levels of sales, improving mix and a sustained benefit from the reduction in the group's cost base, the firm said.

Revenues for the ten months to 31 October 2011 were 15.1% higher than in the same period last year.

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However, Bodycote added that year-on-year comparatives had, as expected, been getting progressively more challenging throughout the second half of 2011.

In its aerospace, defence and energy division, revenues from the commercial aerospace sector continued to improve steadily, with both OEM and maintenance and repair requirements increasing.

The defence sector remained stable, while sales into oil and gas customers continued to be strong, particularly in North America, the firm said.

Industrial Gas Turbine revenues had shown only marginal improvement.

As previously anticipated, its automotive and general industrial sector was suffering from a slowing in the rate of revenue growth in the car, light truck and heavy truck sectors, the company said.

In the general industrial sectors, sales remained strong, despite a modest reduction in the rate of growth, it added.