Bodycote Share News (BOY)

The industrial engineering sector was firmly in the red on Friday afternoon as a heavy fall from Melrose outweighed a good performance from peers IMI and Rotork.A red flag was raised this morning at industrial turnaround specialist Melrose, with the group saying some of its businesses have seen a slow-down in business in recent weeks. While the group said that it is trading in line with expectations, constant-currency revenues (stripping out the contribution from the recently acquired Elster Group) since July 1st were up 6% year-on-year, which represents a slowdown from the 10% growth rate in the first half of 2012. Meanwhile, the overall weekly rate of order intake in the second half of the year has been 8% lower than the first half, but Melrose said it is too early to tell how this will affect 2013, and in any case the order intake rate is varying on a business by business basis. Investec cut its forecasts for Melrose today, though it did maintain its 'buy' rating. The broker said: "As we approach the end of the IMS season, the only clarity is that there is not any. Our assumption for FY13E of only modest revenue growth might in time prove overly negative, but with a book-to-bill ratio below one times year-to-date it feels prudent to lower top-line expectations."In contrast, sector peer IMI gained after saying that second-half trading has been in line with expectations so far though it did highlight some weakness in its Fluid Power division, owing to a tough US vehicle market. Numis kept its 'add' recommendation for IMI, saying that the stock's valuation is "undemanding" given its 12% sector discount.Thermal processing services provider Bodycote rose strongly after reporting reported revenue growth of 2.9% in the four months to the end of October compared to the same period the previous year. Valve engineering firm Rotork, however, was flat despite recording a strong period of order intake since the start of July, with the third quarter at record levels.Top performing sectors so far todaySoftware & Computer Services 859.74 +0.03%Bottom performing sectors so far todayIndustrial Metals & Mining 2,338.06 -2.60%Fixed Line Telecommunications 2,593.18 -2.49%Industrial Transportation 2,248.21 -2.06%Industrial Engineering 7,396.86 -2.04%Oil & Gas Producers 7,446.18 -1.76%BC