Resilient Bodycote rolls with the punches
CURRENCY headwinds and tough trading in Europe are impacting engineering group Bodycote, the company has said.
In a trading update covering the four months from July 1 to the end of October the Macclesfield-based group said revenue for the period was 2.9% higher at constant exchange rates, but 3.9% lower at actual exchange rates, than in the same period of 2013.
It said that while it now expects 2014 to be a tougher year than 2013, it has not changed its full-year forecast.
Bodycote said: “The group’s constant currency performance has been as anticipated at the time of the interim announcement, despite economic growth slowing in Europe, and the board’s expectations for the year to December 31 2014 are unchanged.
“In light of weak economic conditions, especially in the euro zone, the board currently expects that general background demand will be more difficult in 2015 than in 2014. However, the strength of the group’s specialist technologies is expected to counter the effects of the soft macro-economic environment.”
The company which operates nearly 200 facilities in 26 countries and specialises in thermal processing for the defence, oil and gas and automotive industries, said its net cash position had continued to improve over the period. As at October 31 it had £15.8m, compared to net cash of £5.5m at June 30.
In line with its strategy to invest in high growth markets Bodycote has recently opened new heat treatment facilities in Kunshan, near Shanghai and in Gebze, Turkey, which offer a range of services required by automotive and general industrial customers.
