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One of those engineering shares dragged lower by the Charter International profits warning was Bodycote, which ended 14p lower at 338p, says the Times. The share price fall did take the shine off some good news the company was keen to announce from the Paris Air Show. Rolls-Royce, which is one of the company’s five biggest customers, has signed another ten-year agreement to continue to use Bodycote for the work to service and heat-treat its aero engine blades. The shares are on about 12 times’ this year’s earnings, which is relatively low for the stock, and could have further to go, absent any real economic meltdown, the paper writes.
Bodycote expands in Mexico with a new vacuum heat treatment facility Plant to serve Rolls-Royce and Mexico's rapidly expanding aerospace industry MACCLESFIELD (U.K.) - At the 49th International Paris Air Show, worldwide thermal processing specialists Bodycote today announced the planned opening, in the third quarter 2011, of a new vacuum heat treatment facility in northwest Mexico. The first of its kind in the region, the facility will provide outsourced specialist processing support to major aerospace and power generation suppliers in the area, including those that serve the likes of Rolls-Royce, Honeywell, Siemens, along with other aerospace and power generation manufacturers in the region. Bodycote's core business is to provide services that improve the properties of metals and alloys, thereby making products stronger and safer. The company plays a vital role in the aerospace supply chain. Its new plant, located in the city of Empalme in the State of Sonora, is a result of Bodycote's recently signed long-term agreement with Trac Precision, a key supplier to Rolls-Royce and Siemens. Under this agreement, Bodycote will support Trac's Mexico operations with vacuum brazing and heat treating. In addition, the plant will be a more cost-effective option for other aviation manufacturers within the region, enabling them to provide complete processing without transporting parts back to the U.S. This streamlines their supply chain by reducing labor and logistical costs, improving turnaround times and reduces their capital employed. Bodycote's facility will be housed at the Bella Vista Industrial Park, which is operated by The Offshore Group, the largest provider of outsourced manufacturing support, or "shelter" services, in Mexico. The new Mexico location will maintain full aerospace accreditation and prime approvals supported by Nadcap and AS9100. The cost of establishing this facility has been included within the capital expenditure plans of the group as set at the beginning of 2011.
http://www.investegate.co.uk/Article.aspx?id=201106210700106863I
Bodycote and Rolls-Royce sign 10-year renewal agreement MACCLESFIELD (U.K.) - At the 49th International Paris Air Show, worldwide thermal processing specialists Bodycote today announced the signing of a 10-year renewal contract with Rolls-Royce to provide thermal processing services in the United Kingdom. Bodycote's core business is to provide services that improve the properties of metals and alloys, thereby making products stronger and safer. The company plays a vital role in the aerospace supply chain. The new contract involves direct support for Rolls-Royce from Bodycote's on-site facility located within the boundaries of the Rolls-Royce Precision Casting facility in Derby and five additional U.K. locations. Bodycote will provide Rolls-Royce with heat treatment, hot isostatic pressing, thermal spray coatings and metal joining, including brazing and electron beam welding. The agreement also provides the framework for Rolls-Royce and Bodycote to extend their partnership in other parts of the world, including North America and Asia. Based on its range of services, global footprint and ongoing expansions, Bodycote is well-positioned to meet the needs of manufacturers seeking long-term agreements as they globalise their supply chains and simultaneously reduce their number of suppliers. This also allows them to maximise their return on investment from their global operations. Rolls-Royce signed its first key supplier agreement with Bodycote in the early 1980s. In the late 1990s, Bodycote became the first subcontractor to establish operations within the boundaries of any Rolls-Royce facility, and remains so to this day.
http://www.investegate.co.uk/Article.aspx?id=201106200700096840I
s your so naughty
Evolution Securities issued a "buy" rating for Bodycote (BOY), the engineering group, with an increased target price of 470p, up from 430p. Following the interim management statement, the broker notes that 2011 will come in towards the top-end of operating profit expectations, ranging from 55 million pounds to 76.6 million pounds. In light of this, Evolution increased its 2011 sales forecast from 530 million pounds to 545 million pounds and upped its operating profit number from 66 million pounds to 73 million pounds. Bodycote shares were unmoved at 388p.
A lot of engineering businesses doing well just now. SP performing very well
Bodycote eyes strong FY Date: Wednesday 27 Apr 2011 LONDON (ShareCast) - Engineering firm Bodycote expects headline operating profit for the year to 31 December 2011 to be towards the top end of analysts' forecasts after strong demand for heavy trucks. The metals engineer said revenues for the three months to 31 March 2011 were 19.2% higher than in the same period last year. The group saw progress across most of its divisions, which include aerospace and defence, construction, power generation and oil and gas, while demand at its Industrial Gas Turbine unit stabilised, but remains weak. "In Automotive & General Industrial, car and light truck sales have continued to grow, albeit at a slower rate than last year," Bodycote said in a company statement. It added, "Heavy truck revenues have continued to increase strongly and sales to general industrial customers have continued the robust performance seen in the latter part of 2010," Bodycote said the trends seen in the second half of 2010 have broadly continued in the first quarter of 2011. Net borrowing at 31 March was £49.9m, compared to £51.3m at 31 December 2010.
Bodycote is one of the world's biggest suppliers of thermal treatment services, with a particularly strong presence in the UK, the US, France, Germany and Sweden. The share price has been recovering from the depths of 2008 when the price was about 100p. The company looks a solid commitment to the improving outlook for a broad range of sectors, from car and truck production to aerospace and energy. Buy, says the Scotsman.
I know very little about this Company but there were some big trades here today - its perhaps worth reading up on! On my to do list!
Bodycote (BOY) has swung to a pre-tax profit for the year ended 31st December 2010 but news growth in 2011 is expected to be slower than a year earlier pushed the specialist testing supplier's shares down 12.5p to 286.2p. The group reported pre-tax profits from continuing operations at 45.2 million pounds, which compares to a loss of 54.5 million pounds a year earlier, on revenue up 14.8% at 498.8 million pounds. "The board is confident that 2011 will be another year of growth for Bodycote, albeit at a less rapid rate than experienced in 2010," commented chief executive Stephen Harris.
Thermal processing company Bodycote is another FTSE 250 company in the wars, after it said sales levels are deteriorating slightly, even from the depressed levels seen in the first half of the year.
Im thinking there is a good possibility that the 280 your waiting for may just happen if there are no new offers before Friday. I jumped in feet first at 300 and still holding my breath, Its a risk I was willing to take and am still confident.
Tempus in the Times thinks Sulzer may yet come back with an offer and rates BOY as a buy.
Hmm, well if you look back at the bid for HMV which was 210p and the company rejected it, the bidder walked away. HMV fell signinicantly then, and after profits warnings since it is now 114p, so nothing is guaranteed. BOY isn't in the same position as HMV but if Sulzer is the only suitor then there's little to keep the SP up for the time being. However if 280p is a target buy price that looks sensible enough.
Play the game and make the gain! The suitor values the company at nearlt 50p or close to 16% higher than the closing sp. 260ish before the bid emerged so I will set me level at 280p and sit and wait.My experience of this situation has shown that once the spotlight is on a target the light does not just go out and die.To quote Arnie "I`ll be back"!
Sulzer appear to be walking away, so still a tricky call. They could drop back much further if there's no other company interested.
When I read the news just after 17:00 on this it suggested a strong buy and it appears many have beat me to it. On the downside, Bodycote was the biggest FTSE 250 faller, down 29 pence at 296 after rejecting Swiss company Sulzer's final offer of 346-1/2 pence per share on Friday, with analysts struggling to justify the 350 pence share price at which its management values the shares. It seems they the share holders are holding out for top price.
Sulzer have until the 27th April to bid or walk away from Bodycote International. The indicative bid is 325p per share and was rejected by BOY, a suggestion was that 340p would be needed to suceed. It will take a braver investor than I to buy or short this one.