29th Apr 2014 09:56
LONDON (Alliance News) - Engineering company Bodycote PLC Tuesday said revenue rose at constant currency rates in the first quarter of 2014, although the company joined the long list of those reporting a hit when currency fluctuations are taken into account.
The company said revenue was GBP153 million for the three months to end-March, a 2.8% increase at constant currencies but down 2.2% at actual exchange rates. It said the figure had met its expectations, and its forecast for "further progress" in 2014 on a constant currency basis remains unchanged.
The company, which uses its engineering processes to strengthen and extend the life of metals and components, has been hit by the slowdown in defence markets in countries like the US and UK. Governments in those countries have been slowing defence spending as part of an effort to deal with budget deficits and as recent conflict zones like Afghanistan have been wound down. The company has been pushing hard into its other areas of focus in an attempt to offset the decline in its defence markets.
In a statement, Bodycote said overall revenue was up 1.4% at constant currency rates in its aerospace, defence and energy business, as defence revenue fell 2.3% but oil and gas revenue rose 1.9% and civil aviation demand was unchanged. Sales in the industrial gas turbine market were up 9.3% at constant currencies.
Its automotive and general industrial business posted a 3.9% rise in revenue at constant currency rates, as higher sales in Western Europe more than offset a revenue decline in North America.
The company didn't detail the currency moves that are weighing on its overall reported revenue.
Bodycote said it had net cash of GBP12.4 million at the end of March, down from GBP15.0 million at the end of December, in line with its usual seasonal pattern.
Bodycote shares were down 0.8% at 743.50 pence Tuesday morning, but on a day with few big declines in the index, that made it one of the biggest decliners.
By Steve McGrath; [email protected]; @stevemcgrath1
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