Demand still weak at Bodycote

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LONDON (ShareCast) - Trading conditions remain tough at thermal processing company Bodycote (LSE: BOY.L - news) , with sales levels deteriorating slightly, even from the depressed levels seen in the first half of the year.

Sales in the four months to 31 October were 26.4% lower than in the corresponding period of 2008. On a constant currency basis, sales were down 32.6% year on year, compared to a 31% year on year decline in constant currency terms in the first half of the year.

The group said overall sales and segmental trends in the second half of the year are little changed from those seen in the second quarter of 2009, and that this assessment applies to all territorties in which the group operates.

The group’s restructuring programme remains on track, with the reshaping of the group’s activities in Brazil now underway.

Net borrowings at the end of October stood at £109.5m, compared to £88.7m at the end of June, with the increase partly due to costs associated with the restructuring programme.

The group remains in discussions with its bankers about its revolving credit facilities, which mature in August 2010, and is confident these can be renegotiated before the end of 2009.

‘Demand visibility remains limited, due to the group's short order book,’ the company said, though the trends seen thus far in 2009 are expected to continue for the remainder of the year.