Bodycote posts £54.5m loss after turbulent year
INDUSTRIAL group Bodycote cut more than1,000 jobs and closed 25 facilities last year as it continued to feel the pain of the recession.
The Macclesfield-based company, which heat treats metals for use in sectors such as automotive, aerospace and defence posted an annual loss of £54.5m for 2009, as it was hit by a slump in revenues and major restructuring costs.
Revenues fell from £551.8m to £435.4m. Headline operating profits slumped to £8m from £71.2m.
During the year staff numbers were reduced 29% to 5,512 as 25 factories out of 203 sites were closed down at a cost of £25.4m.
Total restructuring costs were £58.2m – representing a second year’s work in reshaping the business. Last year one off charges were £122.9m.
Chief executive Stephen Harris, who only joined the business early last year said:
“2009 was a year of transition for Bodycote, with a major cost reduction programme implemented, a new strategy defined and the group reshaped accordingly.
“End markets were very challenging with sharply lower volumes, the impact of which was addressed by significant cost reductions.”
He said there were signs of recovery in many automotive and general industrial markets, but this was not the case in the aerospace, defence and energy markets.
“The pace of recovery remains uncertain and potentially uneven. We anticipate that full recovery in demand may take several years. This notwithstanding, we enter 2010 with a reshaped business and renewed vigour.”
Mr Harris has restructured Bodycote into two defined divisions – one serving aerospace, defence and energy and the other automotive and general industrial customers.
Bodycote said it had successfully refinanced and did not expect to have to announce any further restructuring charges this year.
The annual dividend was held at 8.3p per share.
