20th Nov 2019 09:28
(Alliance News) - Bodycote PLC on Wednesday said its performance in the four months to the end of October matched the first half, giving the company confidence its full-year results will be in line with current market expectations.
Shares in the coatings services firm were 2.9% higher in London in early trading on Wednesday at 858.50 pence.
In the period from July 1 to October 31, Bodycote said it recorded GBP244.7 million in revenue, 1% higher than in the same period year before. Revenue for the 10 months to the end of October was flat year on year, with Bodycote saying its performance showed a "marginally" improving trend on the first-half growth rate.
On a divisional basis, ADE revenue was up 6% to GBP103.4 million, and also up 3% for the 10 months to October 31. AGI revenue was down 3% to GBP141.4 million in the four month period and down 5% for the 10 month period.
"Bodycote's performance in the period reflected a continuation of the trends of the first half, with civil aerospace revenues growing strongly; and the automotive and general industrial market sectors remaining soft," the company said.
Bodycote said its Specialist Technologies' revenue grew by 6% in the period versus the year before, with Emerging Markets revenue growing 14%.
Civil aerospace revenue grew ahead of the background market, the company said. Total civil aerospace revenue grew 14%, with North American growth boosting the business.
Energy revenue slipped 2%, as growth in Subsea was "more than" offset by weakness in North American onshore revenue. Industrial Gas Turbines revenue saw "modest" growth, but Bodycote warned it is "too early" to assume this growth will continue.
Car & Light Truck revenue fell 6%, as Western Europe "continued to be the main area of weakness", where revenue dropped 14%. The company noted the introduction of Worldwide Harmonised Light Vehicle Test Procedure regulations in the region for continued "poor visibility in the direction of the market". Bodycote said it is "preparing for all eventualities".
General Industrial revenue was 6% lower, with Bodycote blaming capital expenditure related revenue continuing to be "soft" as macroeconomic uncertainty remains heightened.
The company added: "Cost control initiatives remain a priority, with a particular focus on the areas of our operations where we are seeing revenue weakness. Consequently, margins and underlying cash generation remain strong. Overall, Bodycote's board is confident that the group's full year result will be in line with current market expectations."
By Paul McGowan; [email protected]
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