Bodycote year-to-date revenue up 10% to £677m

Bodycote, the Macclesfield-based heat treatment and thermal processing giant, said its revenue for the four month period from July 1 to October 31, 2023, rose 4% to £257 million.

Bodycote said it has delivered year-to-date revenue of £677 million “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 the firm’s expectations.

The firm said its Aerospace & Defence revenues increased by 13%.

“This reflected market share gains in Classical Heat Treatment in North America, together with OEM build rate increases and higher aftermarket demand,” said the firm.

“Defence growth was 6%, excluding surcharges. Industry-wide Aerospace supply chain issues remain, but are progressively improving.”

Automotive revenues were down 2%, driven by reduced 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,” said the company.

“Bodycote’s penetration of the Electric Vehicle market continues to improve.”

The firm’s General Industrial (including Energy) revenues were up 2%.

“Bodycote achieved strong growth in both Oil & Gas and Medical subsectors, which constitute 18% of General Industrial revenues,” said the company.

“Within the Oil & Gas subsector, the group’s share of the Surface Technology markets in EMEA grew significantly. There were revenue declines in a number of subsectors, including Tooling, Industrial Machinery and Electronics. Geographically, Western European growth was ahead of that in North America.”

In its outlook, Bodycote said: “Reflecting the good progress achieved year-to-date, the board’s expectations for full year 2023 remain unchanged.

“Looking beyond this year, the board remains confident in the Group’s prospects for continued profitable growth.”