Business
Trading Update
Trading Update.
About this update from Bodycote Plc
[{"type":"text","content":"\n\n \n \nWednesday, 22 November 2023\n \n \nBodycote plc\n \nOn track to meet full year expectations\n \nBodycote, the world's leading provider of heat treatment and specialist thermal processing services, issues a trading update covering the four month period from 1 July to 31 October 2023 (\"the period\").\n \nTrading\nBodycote delivered year-to-date revenue of £677m, representing growth of 10% versus the prior year, which is up 6% excluding energy related surcharges and at constant currency. Operating margins have increased in line with our expectations.\n \nIn the four month period, the Group delivered revenue of £257m, up 4% year-on-year at constant currency on both a pre and post surcharge basis.\n \nThe following commentary reflects constant currency growth rates versus the comparable period last year, unless stated otherwise.\n \nADE revenues were £116m, up 10% (8% excluding surcharges). AGI revenues of £140m were down 1% year-on-year but up 1% when the effect of declining surcharges are excluded.\n \nThe Specialist Technologies portion of the divisions achieved revenue growth of 8% both before and after the impact of surcharges. Growth continued to outperform Classical Heat Treatment, where revenues rose by 2% pre and post surcharges.\n \nDivisional revenues in Emerging Markets declined by 7% (down 6% excluding surcharges), with lower activity in China and Eastern Europe.\n \nMarket Sectors\n \nAerospace & Defence revenues increased by 13% (10% excluding surcharges), in line with the rate of growth delivered in H1 and led by ongoing growth in Civil Aerospace (up 11% excluding surcharges). This reflected market share gains in Classical Heat Treatment in North America, together with OEM build rate increases and higher aftermarket demand. Defence growth was 6%, excluding surcharges. Industry-wide Aerospace supply chain issues remain, but are progressively improving.\n \nAutomotive revenues were down 2%, driven by reduced surcharges. Underlying growth was 1% excluding the impact of surcharges. The reduction in growth versus the first half of the year reflected the more modest increases in car and light truck production rates and the UAW strike. Bodycote's penetration of the Electric Vehicle market continues to improve.\n \nGeneral Industria...