Aerospace and auto deliver for Bodycote

Announcing its annual results for 2010, Bodycote filed a near 15% revenue improvement and said that its cost reduction programme had delivered savings of £45m. Commenting on the performance, chief executive Stephen Harris said: "2010 saw a notable and pleasing improvement in the performance of the Group. Better macro economic conditions were an important contributor to this and the underlying ability of the business to deliver consistently superior value has been strengthened considerably. Total revenue growth was well ahead of market improvement. The reorganisation of the Group into market focused divisions has enhanced revenue growth and careful targeting of capital investment has improved cash flow and return on capital. "Looking at 2011, it is anticipated that automotive and general industrial business will continue to grow at a reasonable pace. Aerospace, defence and energy demand has begun to recover, although within this the power generation segment remains soft, with the timing of improvement still unclear. In summary, the Board is confident that 2011 will be another year of growth for Bodycote, albeit at a less rapid rate than experienced in 2010. The year has started in line with these expectations. Looking further out, the Board sees encouraging opportunities for improved through-cycle returns." 2010 revenue totalled £499.8m (2009: £435.4m) while pre-tap profit reached £45.2m (2009: £54.5m loss)