Bodycote warns of a looming lull as its full-year profits surge

City A.M. Reporter
ENGINEERING company Bodycote yesterday reported a 19 per cent rise in full-year profit on new contracts in its aerospace business, but warned of modest growth this year due to the economic slowdown in Europe.

Pretax profit rose to £89.8m from £75.8m a year earlier.

Revenue rose three per cent to £587.8m while turnover in the aerospace, defence and energy businesses rose 12 per cent to £260.4m.

But demand in its automotive business fell in all regions apart from North America.

The Cheshire-based company, which heat-treats jet engine turbine blades and other aircraft and car parts, reported its strongest growth in commercial aerospace business in Europe due to increased demand for narrow-body aircraft.

Its equipment sales improved as Boeing and Airbus continued to increase production rates.

Bodycote, however, says it was likely to see moderate growth rates in aerospace this year. “We are in a little bit of a lull,” Bodycote chief executive Stephen Harris said.

Investec Securities analyst Michael Blogg said in a note to clients that he had been viewing 2013 and 2014 with caution and this is echoed by the company’s experience in January.