Bodycote lifts first quarter revenue

Heat treatment firm Bodycote lifted revenue by nearly four per cent in the three months ended March 31st and still expects modest progress during the remainder of the year.

Heat treatment firm Bodycote lifted revenue by nearly four per cent in the three months ended March 31st and still expects modest progress during the remainder of the year.

Revenue during the first quarter rose 3.9% to £156.5m from the same period last year or 2.9% at constant exchange rates and was in line with company expectations.

Acquisitions made in 2012 contributed 8.5% or £12.8m to group revenue, while organic revenue, at constant exchange rates, fell by 5.6% or £8.5m compared to the first quarter of 2012.

Aerospace, Defence & Energy revenue rose 6.5% from the same quarter in 2012 although organic revenue was lower by 0.5%.

Bodycote saw growth at its offshore oil and gas business but it did not completely offset weaker demand for gas exploration and production in North America, it explained.

Overall, organic revenue in Oil & Gas was down by 5.1% but when acquisitions are included, revenue was ahead 2.3%.

Bodycote said the Industrial Gas Turbine market continued to improve and revenue jumped 17.5% from last year, of which 11.2% was organic.

Revenue at its Automotive & General Industrial business was up 2.4% or 1.4% at constant exchange rates. Within this sector, the anticipated weak demand from the Heavy Truck sector together with some softness in General Industrial, however, more than offset the gains from Car and Light Truck.

Net debt as at March 31st 2013 increased to £35.6m compared to £34.2m at December 31st 2012.

Bodycote noted, "Given the group's performance in the first quarter of 2013, the board's expectation for modest progress in 2013 is unchanged from the time of the 2012 annual results' announcement in February."

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020