27th May 2021 10:52
(Alliance News) - Bodycote PLC said Thursday its revenue dropped at the start of 2021, with its Aerospace & Defence unit suffering from reduced production rates.
The Macclesfield, England-based pressing and coatings services provider said total revenue in the four months to April 30 was down 4% year on year to GBP208 million.
"As expected, our two businesses experienced contrasting trading conditions. [Automotive & General Industrial] revenues, at GBP128 million, were 5% up on last year in the period, while [Aerospace, Defence & Energy] revenues, at GBP80 million, were 16% lower than last year, but 22% lower on an organic basis," Bodycote added.
Automotive revenue surged 19% in the period, but Bodycote noted growth through the rest of 2021 will depend on the global chip shortage. General Industrial revenue was 1% higher, with revenue levels continuing to improve quarter by quarter as industrial production recovers.
The main drag to revenue was Aerospace & Defence, dropping 19%, as its civil aerospace business remains "subdued".
"The news flow from the [original equipment manufacturers] is moving in a positive direction with production rates improving for narrow-body aircraft as well as some pick up in flying hours for wide-body aircraft. This is leading to some very early signs of pick up in our business, although, with surplus inventory levels persisting in the supply chain for specific platforms, it is too early to tell if this will develop into a sustained improvement in revenue levels," Bodycote continued.
It added: "We are seeing improvement in revenue trends across most of our key markets and the group is benefiting from last year's restructuring. We are, therefore, cautiously optimistic as we look forward to the remainder of this year."
Shares in Bodycote were 0.3% higher in London on Thursday morning at 852.65 pence each.
By Paul McGowan; [email protected];
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