Bodycote predicts profits hike
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Bodycote, the world's largest and most respected provider of thermal processing services, said today (9 July) that it expected profits to be well ahead of previous expectations following an improvement in demand. The Macclesfield, Cheshire-based company operates an international network of facilities, and serves a range of industries including aerospace, defence, automotive, power generation, oil and gas, construction, machine building, medical and transportation.
In a trading update the group said it had continued to see a steady and broad based improvement in demand and, consequently, revenue for the six months to 30 June 2010 was expected to be 8% above the same period last year. At the same time, Bodycote said it continued to benefit from a planned reduction in its cost base as a result of a wide-ranging restructuring programme that began in late 2008 and was nearing completion.
However, looking ahead, the company said that demand levels remained uncertain and possibly uneven. Sales in the second half were expected to be impacted by the usual seasonal pattern of customer requirements and were therefore likely to be lower than in the first half.
But if current levels of demand were sustained and allowing for normal seasonal differences between the first and second half, Bodycote now expected that operating profit for the year would be significantly above the top of the current range of full year forecasts.
