Bullish Bodycote 'will beat forecasts'

13 April 2012

ENGINEER Bodycote International expects to beat City forecasts for full year pre-tax profits. Market consensus is £40m but finance director David Landless said conditions were better than previously thought.

First-half underlying profits were up 25% at £22.2m.

The Macclesfield-based firm attributed the increase mostly to improved manufacturing demand and new outsourcing contracts.

However, the group - a specialist in heat treatment, materials testing and metallurgical coatings - said it expected a lull in second half sales due to holidays, when many customers shut down their plants.

It added that its energy bill could rise by about £1m in the second half, partly due to the impact of higher oil prices on gas and electricity costs.

Bodycote, which has 14 UK plants and operations in 19 countries, said its efforts to pass on the higher costs to customers had been only partially successful.

Chief executive John Hubbard said the group was facing a more difficult second half, but added: 'The hard work of the last 30 months to reduce costs and rationalise our operations is continuing to deliver the expected cost savings and operational benefits.'

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