Takeovers help growth for engineering group Bodycote
ENGINEERING group Bodycote has seen growth in recent months, but this has come from acquisitions rather than its existing business.
The company, which has operations in Birmingham, Wolverhampton and Coventry, heat-treats jet engine turbine blades and other aircraft and car parts.
In a trading update it said sales were up 6.9% in the four months since July.
At constant exchange rates the business saw growth of 3.6% which reflected 4.9% growth from acquisitions and a 1.3% decline from existing businesses.
Sales in aerospace, defence and energy were 0.2% lower, while commercial aerospace revenues have grown in both North America and Europe. There has been lower demand from the oil and gas sector, particularly for onshore requirements in the US. Revenues in the automotive and general industrial business were higher by 12.9%, with the growth coming from acquisitions.
The company said: “Car and light truck revenues have grown well in both North America and Europe and at a higher rate than in the first half. Heavy truck sales have turned positive in Europe but remain very weak in North America. In contrast, general industrial demand has also remained weak, especially in the mining and construction equipment sectors in North America. Emerging market sales grew modestly.”
It added: “Although economic growth in both Europe and North America continues to be muted, the group’s organic performance is showing some improvement, as anticipated, and the board’s expectations for the year to December 31, 2013 are unchanged.”
