18th Dec 2007 07:01
Bodycote International PLC18 December 2007 18 DECEMBER 2007 BODYCOTE INTERNATIONAL PLC TRADING UPDATE Bodycote International PLC is issuing this update prior to entering its closeperiod on 31 December 2007. TRADING Sales growth for the year to date (at constant exchange rates) has been 18% ofwhich 8% is organic and a further 10% is from acquisitions. Actual sales growthhas been 15%, with the difference principally due to the weakness of the USdollar. Aerospace, power generation and oil & gas demand remains robust in allterritories and automotive sales have continued to be buoyant in Europe. Thermal Processing turnover has increased 15%1 (7% organic). Europe continuesto be robust. North America has been temporarily affected by the previouslyannounced closure of two large and several smaller facilities. The exceptionalcost of closing and remediating these facilities has increased by £3m. Margindevelopment continues to meet expectations even after incurring the start-upcosts at our greenfield facilities in China, India and Mexico. In Testing, sales have increased 26% 1 (10% organic) in line with our growthstrategy. Margins have been impacted by start-up costs at a number of newfacilities in Singapore, the Middle East and Mexico. In response to continuingsofter trading conditions in North America, we have taken a number of actions tostreamline the business including senior management changes, the closure ofcertain testing activities in Canada and rationalising our eight automotivetesting facilities into a single centre of excellence in Detroit. The totalexceptional cost of all this reorganisation is expected to be £2m, with apayback in less than two years. Cash flow performance continues to be satisfactory and the net finance chargewill be slightly lower than in 2006. The Board expects to announce that full year sales and headline operating profit 2 will be within the range of market forecasts. 1 at constant exchange rates 2 excluding impairment of goodwill and equity investments, amortisation of acquired intangibles, major facility closure costs and interest and tax on associates. OUTLOOK Our key aerospace, power generation and oil & gas sector customers areforecasting buoyant conditions for 2008. Despite continuing softness in theNorth American automotive market, the Board remains confident that the Groupwill make further progress towards its strategic objectives in the coming year. Preliminary results will be announced on 26 February 2008 Telephone conference at 0900 hours GMT: Dial-in number is +44 (0) 1452 569 393. Call reference, if there are any problems, is 28295745 For further information, please contact: Bodycote International plc Tel No: +44 (0)1625 505300John D. Hubbard, Chief ExecutiveDavid Landless, Group Finance DirectorFinancial Dynamics Tel No: +44 (0) 20 7831 3113Jon SimmonsJames Ottignon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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