Bodycote warns on profits and more cost cutting
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Bodycote , the Macclesfield, UK-based international specialist in heat treatments, hot isostatic pressing, and metallurgical coatings warned on future profits today (10 July) and said further cost cutting measured were being put in place. In a trading update, the company said it would give further details of these additional actions, at the time of its half year results announcement on 29 July.
Bodycote said industrial output has continued to decline globally, but in European economies, such as Germany and Sweden, where automotive, capital goods and general industrial activities predominated, the impact for the company had been significantly greater than in countries which also had substantial aerospace and power generation activity, notably the UK and USA.
Revenues for the six months to 30 June 2009 were down 31% and the company expected to announce a marginal operating loss for the half year. Additional restructuring actions in South America and Europe had now been put in place, together with further cost cutting measures over and above those previously anticipated.
Looking forward, Bodycote said there had been some modest improvement in auto demand from the very depressed levels seen in the early part of the year but customer summer shutdowns were expected to be longer than those of last year. Aerospace and oil
& gas demand continued to soften.
If demand for the company's products and services remained at current depressed levels, the company anticipates 2009 profits being materially below the market consensus figure of £24 million.
