Bodycote Share Discussion Threads

[bluebelle] 16/10/2012 09:04

BODYCOTE PLC ACQUIRES CAROLINA COMMERCIAL
HEAT TREATING BUSINESS FOR US$ 68 MILLION
MACCLESFIELD (U.K.) - Bodycote plc (LSE:BOY), the world's largest thermal processing services provider, announced today that it has acquired the business of Carolina Commercial Heat Treating (CCHT LLC) comprising six facilities in the South Eastern USA, together with an additional facility in Southern Indiana. The business was acquired from Bluewater Thermal Solutions LLC (Bluewater), for a total cash consideration of US$68 million. Bodycote has not acquired any interest in the remaining ten facilities owned by Bluewater in the Great Lakes region of the USA.
The consideration of US$68 million has been met from existing cash resources and bank facilities. In the twelve months to September 2012 the business delivered EBITDA of US$11.7 million on sales of US$34.9 million. The acquisition is expected to achieve a return on investment well in excess of Bodycote's cost of capital and be accretive to earnings in the first year of ownership.
The majority of the business serves the general industrial hinterland of the Carolinas, Georgia, Alabama and Tennessee, including some key customers in off-road vehicle and heavy truck manufacturing and a growing presence in aerospace and energy markets (c.15% of sales). Sales to the car and light truck sectors represents some 23% of the business.
Commenting on the acquisition, Stephen Harris, CEO of Bodycote said: "The acquisition of this pre-eminent heat treatment business in the South Eastern USA and Southern Indiana represents a considerable step forward in the delivery of Bodycote's strategy in North America. The business is of high quality and has few local competitors. This region of the USA continues to be amongst the highest recipients of inward investment in North America with many domestic and overseas corporations establishing facilities and supply chains in the area. The recent announcements from both Boeing and Airbus concerning their new manufacturing operations in the region underscore this trend. We expect the business to become more focused on aerospace and energy markets over time as the supply chains for these industries expand.
The acquisition also represents the first meaningful exposure for Bodycote to the off-road vehicle and heavy truck market in the USA. While demand from these particular sectors is expected to be lower in the near term, the medium and longer term prospects for this part of the business offer attractive returns".
Commenting on trading for Bodycote globally Harris added: "Trading for the period 1 July to 30 September 2012 was volatile, but overall has been in line with expectations".
Bodycote will publish its interim management statement on 16 November 2012.
Investor Conference Call
Stephen Harris and David Landless will be hosting a conference call for analysts and investors at 1000 hours today (16 October 2012).

[megabear] 16/10/2012 08:20

Looks like nice acquisition and more importantly trading said to be in line with expectations. Could be a pretty big short squeeze here as it had sold off because of the read across from the MGCR profit warning.

[snatander] 13/10/2012 09:58

Industrials taking a bashing, XPP, RNO, Volex,Cookson, Morgan Crucible have issued profits warnings this week. So is this next?

[sleveen] 13/10/2012 09:48

I think Mr Market suspected as much last week, hence the double top.

[speedsgh] 12/10/2012 13:12

The share price won't have been helped by this IC article in the last few days.
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... Back in the UK, Cookson has already taken the pain and James Tetley, an analyst at N+1 Singer, thinks Bodycote is vulnerable, too. "In July, both firms talked of weakness in Europe during the first half, but reasonably robust growth elsewhere, particularly in North America and emerging markets," he says. "That optimism seems to have ebbed away."

Indeed, 57 per cent of Bodycote's first-half sales were from automotive and general industrials, much of that from Europe. True, the company boasts a solid aerospace business, but its shares have risen nearly a quarter since those results and sluggish growth elsewhere will hurt.

"Now, Europe is probably weaker than expected and there are signs that the US is slowing, so it's difficult to see where growth is going to come from in 2013," warns Mr Tetley.

The concern is that the big heavy truck, mining and general industrial companies have already begun rebasing their expectations for next year. "There may be an element of destocking in here, but it is currently too difficult to unpick," believes Mr Tetley. This worry was illustrated on Wednesday when US diesels engines maker Cummins warned on revenues for this year, cutting guidance by $1bn to $17bn due to delays in capital spending plans by customers.

[toffeeman] 12/10/2012 08:45

Or if you take a support line from Nov 2011 - 325?

[cockneyrebel] 12/10/2012 08:18

reveral point here?

CR

[sleveen] 11/10/2012 19:58

the double top mid Sept and early Oct is a little troubleing though IMHO.

[cockneyrebel] 11/10/2012 15:33

Long again from today, cyclicals back on the up here imo.

CR

[sailastra] 10/10/2012 15:36

My first entry...been watching this little break down recently and tend to feel that it is a pause in the uptrend rather than a full scale tumble...Given that Cookson warned that things are difficult and that Morgan Crucible have lost ground a little, we can not expect BOY to buck the trend...The sector is under a little pressure for sure...These stocks are not expensive unless you believe that their earnings are set to get toasted.

[purple boots] 10/10/2012 13:00

disappointing double top here, perhaps heading for gap at 3.66

[k mon] 02/10/2012 11:08

Spot on there Big D.

[bigbigdave] 01/10/2012 16:46

Next leg up coming here I reckon.

[speedsgh] 11/9/2012 13:08

Boy, is this a quiet thread! Probably due a bit of breather after recent strength but nice to see the intra-day reversal.

[bigbigdave] 07/9/2012 08:07

Breaking out past August high this morning.

[sleveen] 28/8/2012 10:47

looks like the support @ 322p will be tested. Edit: or maybe not.

[cockneyrebel] 23/8/2012 10:24

Looking hot here imo:

lovely bowl:

[cockneyrebel] 22/8/2012 11:19

The hot buyrs that created this rally and bowl are still out there waiting to pounce on the dip imo.

CR

[cockneyrebel] 16/8/2012 16:58

Panmure out with a Buy today, upped their target today from 505p to 540p

CR

[cockneyrebel] 16/8/2012 16:14

Nice intraday reversal :-)

Welcome BBD :-)

CR

[cockneyrebel] 15/8/2012 13:40

On or near a nice pointy on the bowl to be adding here imo - so I have :-)

CR