Bodycote PLC BOY Interim Management Statement

  Bodycote PLC (BOY) - Interim Management Statement

RNS Number : 2692R
Bodycote PLC
16 November 2012




BODYCOTE PLC



INTERIM MANAGEMENT STATEMENT



16 NOVEMBER 2012



Bodycote is issuing its interim management statement covering the period  from 
1 July to 15 November 2012. The  financial and operational data set out  below 
relates to the  four months  from 1  July to  31 October  2012 (the  "period") 
unless otherwise stated. All comparative  comments in this statement  reflect 
comparisons with the corresponding period in 2011.



CURRENT TRADING



Reported revenue growth  for the period  was 2.9% (7.6%  at constant  exchange 
rates, of  which  organic  growth  accounted  for  2.6%  and  5.0%  came  from 
acquisitions).



Sales in Aerospace, Defence and Energy were ahead by 14.4% (15.9% at  constant 
exchange rates), with organic growth at 10.4% and acquisitions added 5.5%.  At 
constant exchange rates  sales in  Western Europe  improved by  14.2%, all  of 
which was organic.  In North  America, revenues, at  constant exchange  rates, 
grew 17.5% of which organic growth accounted for 7.1% and acquisitions  10.4%. 
Revenues from the commercial aerospace sector showed further growth, driven by
increases in OEM production.  The defence sector  remained stable. Sales  into 
oil and gas customers continued to improve. Industrial gas turbine demand  was 
good in North America but remained subdued in Europe.



Automotive and General Industrial revenues were lower by 5.2% but at  constant 
exchange rates were ahead 1.8%, with  organic sales lower by 2.9%. In  Western 
Europe sales  at constant  exchange rates  were down  by 2.9%.  There were  no 
acquisitions in  the  period.  In contrast  North  America  increased  organic 
revenues, at constant exchange rates, by 6.5% and acquisitions added a further
32.2%. Emerging market revenues  were weak in  all territories. In  Automotive 
and General  Industrial, car,  light and  heavy truck  sales exhibited  modest 
growth in  North America  and  remained soft  in continental  Europe.  General 
Industrial revenues showed small improvements in all territories.



ACQUISITION

On 15  October, Bodycote  acquired the  business of  Carolina Commercial  Heat 
Treating, comprising six facilities in the South Eastern USA, together with an
additional facility  in Southern  Indiana for  a total  cash consideration  of 
US$67.4 million. The majority  of the business  serves the general  industrial 
hinterland of the  Carolinas, Georgia, Alabama  and Tennessee, including  some 
key customers in off-road vehicle and heavy truck manufacturing and a growing
presence in aerospace and  energy markets (c.15% of  sales). Sales to the  car 
and light truck sectors represents some 23% of the business. This acquisition
represents a considerable step forward in the delivery of Bodycote's  strategy 
in North America.



FINANCIAL POSITION



Net borrowing at 31 October  was £33.7m, compared to  £16.7m at 30 June  2012, 
reflecting the trading performance  outlined above, normal seasonal  cashflows 
and the acquisition costs of Carolina Commercial Heat Treating.



OUTLOOK



Although trading remains volatile, the sales momentum we have seen in  October 
and early November offers support for  the remainder of 2012 and  consequently 
the Board's expectations for the year to 31 December 2012 are unchanged.





Investor Conference Call



Stephen Harris  and David  Landless  will be  hosting  a conference  call  for 
analysts and investors at 0800 hours today (16 November 2012).



Participant's Dial In Number: +44 (0) 203 140 0722 



Participants will be asked for names only, no PIN required





About Bodycote

With more than  175 accredited  facilities in  27 countries,  Bodycote is  the 
world's  largest  provider  of  thermal  processing  services.  Through   heat 
treatment, metal joining, surface technology and Hot Isostatic Pressing (HIP),
Bodycote improves the properties of metals  and alloys, extending the life  of 
vital components for a wide range of industries, including aerospace, defence,
automotive,  power   generation,  oil   &  gas,   construction,  medical   and 
transportation. Customers  in all  of these  industries have  entrusted  their 
products to Bodycote's  care for  more than  30 years.  For more  information, 
visit www.bodycote.com.



For further information, please contact:

Bodycote plc
Stephen Harris, Chief Executive        +44 (0) 1625 505300
David Landless, Group Finance Director +44 (0) 1625 505300
FTI Consulting
Richard Mountain                       +44 (0) 20 7269 7186
Susanne Yule                           +44 (0) 20 7269 7291





The Interim Management Statement, issued in accordance with the EU Disclosure
and Transparency Directive, may contain forward-looking statements which:



 * Have been made by the directors in good faith based on the information

 available to them up to the time of their approval of this statement; and



 * Should be treated with caution due to the inherent uncertainties, which

 are beyond the Board's ability to control or estimate precisely and
include

 both economic and business risk factors, underlying such forward looking

 information.







ENDS





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


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