Profit jump lifts shares in Bodycote

Marion Dakers
SHARES in Bodycote shot up more than nine per cent yesterday after the engineer revealed that full-year profit would come in at the top of analysts’ expectations.

Bodycote said renewed demand from heavy truck customers such as Scania and Volvo has helped push revenue in the nine months to 30 September up 13 per cent.

Sales to the aerospace and defence sectors saw some pick-up towards the end of the third quarter, while gas turbine revenues stabilised but remained at low levels. Oil and gas sales continued to be solid.

Turnover during the summer was stronger than expected, as the company suffered less than feared from customer summer shut-downs.

Analysts expect full-year operating profit of £38.5m to £49m on the back of sales of around £473.5m, said a Thomson Reuters poll.

Bodycote said cost savings from its restructuring were in line with the £44.5m per year it predicted earlier in 2010. The company said in February it expected the economic recovery to take place over a number of years, as it posted pre-tax profit of £3.7m for the year compared to £67.6m in 2009.

Shares in the FTSE 250 firm closed 9.06 per cent up at 301p yesterday.