Strong aerospace sector lifts Bodycote sales in Q1
ENGINEERING group Bodycote has enjoyed a strong first quarter with revenue for the first three months of the year almost 7% ahead of the same period last year.
The group, which has operations in Wolverhampton, Birmingham and Coventry, said sales in its Aerospace, Defence & Energy had performed best of all, being 13.5% ahead of the corresponding period in 2011.
Revenues from the commercial aerospace sector continued to grow well, with both OEM and maintenance and repair requirements increasing. The defence sector remained stable. Sales into Oil & Gas customers grew strongly.
It said Industrial Gas Turbine demand had maintained the trend established in the second half of 2011, with North America remaining more buoyant than Europe.
In Automotive & General Industrial, automotive sales continued to improve in North America but the group that as anticipated, there was some softness in continental Europe due to the weakness of the Eurozone.
Revenues from general industrial customers remained robust, although growth rates were lower than in the corresponding quarter of 2011. In total, Automotive & General Industrial revenues were up by 4.8% on Q1 2011.
Bodycote said the integration of US heat treatment business Curtiss-Wright Corporation, which it purchased at the beginning of April for £32m, was continuing.
The business covers nine sites in Northern and Central USA serving a wide range of industries but with a particular focus on commercial aerospace and oil & gas (34% of sales). It also features some key automotive accounts (20% of sales).
Ahead of its AGM, Bodycote said net debt as at March 31, 2012 was £20.2m, compared to net cash of £0.1m at 31 December 2011 and included the Curtiss-Wright acquisition costs.
In outlook, it said: “Bodycote has delivered a good performance in the first quarter of 2012. The board’s expectations for the full year, for the business excluding the acquisition, are unchanged from the time of our full year results presentation in February.”
