Higher demand boosts Bodycote’s margins
ENGINEERING group Bodycote has started 2011 in the same manner that it ended 2010 with improving markets leading to higher sales and profits.
The Macclesfield-based firm said that in the first three months of the year its sales were 19.2% ahead of last year.
“Margins have improved further, reflecting the higher levels of sales, improving mix and the sustained benefit from the reduction in the Group’s cost base,” the company said in a statement this morning.
It said that sales in the aerospace, defence and energy markets had continued to improve steadily, with demand for commercial aircraft proving to be the greatest spur. Demand from the oil & gas market also remained strong, particularly in North America.
Bodycote also said that sales were also continuing to improve in the automotive sector, albeit at a slower rate than last year.
As a result, its net borrowing by March 31 had fallen slightly to £49.9m (£51.3m), and the company said that it expects its headline operating profit to be at the top end of analysts’ current forecasts, which range from £55.5m-£76.6m.
However, the firm also sounded a note that of caution that its year-on-year comparisons “will become increasingly challenging as 2011 progresses”, partly due to the improved performance during the second half of 2010.
