25th Jul 2019 10:15
(Alliance News) - Bodycote PLC on Thursday said challenging automotive and general industrial markets hurt its profit in the first half of 2019.
The coatings services company said pretax profit in the six months to the end of June declined to GBP62.2 million from GBP67.0 million a year earlier, as revenue slipped 0.4% to GBP366.5 million from GBP368.0 million. On a constant currency basis, revenue fell by 1.5%.
Bodycote explained that it continued to experience higher input cost inflation in most markets, with pressure coming from wage increases, as well as higher utility costs. However, the FTSE 250-listed company noted that price increases and active management of costs enabled it to cover the impact of the cost increases.
Overall volumes declined, Bodycote said, with significant increases in certain sectors, such as civil aviation, were more than offset by declines in other sectors, including the Western European automotive and general industrial markets in particular.
The company declared an interim dividend of 6.0 pence a share, having paid a 5.7p dividend a year prior.
"Bodycote delivered a resilient set of results in the face of challenging automotive and general industrial markets," said Chief Executive Stephen Harris.
"The strong performance in civil aviation is expected to continue and provides a solid footing for the second half," Harris continued. "The board's expectations for the full year remain unchanged."
Bodycote shares were trading 0.8% lower on Thursday in London at 749.00p each.
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