Revenue dip body blow for Bodycote
ENGINEERING group Bodycote has reported a 7.5% fall in revenue in the period from July to October with aerospace, defence and energy income down 11.9% as it continues to face “challenging market conditions”.
The Manchester-based company also said revenue for its automotive and general industrial business fell 4.1%.
Civil aviation revenues grew by 2.1% year-on-year, with good growth in North America and France offset by continued weakness in the UK.
Sales in the oil and gas sector were lower by 41% reflecting some weakening in the run-rate seen in the second quarter.
The company recently announced a reorganisation cost amounting to £19m and completed its exit from activities in Brazil in September, and it said other restructuring moves are proceeding to plan.
Bodycote said it was on track to deliver £6m of savings in 2016 in addition to £4m in the current year.
A statement said headline operating profit for the year to December 31 was expected to be between £101m and £106m, despite “challenging market conditions”.
“The board currently anticipates that there will be no near term improvement in market conditions,” it said. “However, the quality of our portfolio and strength of our financial position place us well to take advantage of any opportunities that arise.”
