|Half year to 30 June|
Aerospace, Defence & Energy (ADE)
Revenues for the ADE business were £128.8m in the six months to June 2015 compared with £133.5m in 2014, a decrease of 3.5%. At constant exchange rates revenues decreased by 4.4%, with gains in aerospace more than offset by weakness in demand from the oil & gas sector.
Headline operating profit1 was £31.5m (2014: £36.0m), a decrease of 12.5%, comprising an organic decline of 14.3% and a 1.8% increase resulting from favourable foreign currency movements. The headline operating margin fell from 27.0% to 24.5%.
Net capital expenditure was £6.3m (2014: £9.8m), representing a spend rate of 0.7 times depreciation (2014: 1.0 times). Notable projects include expansion of aerospace heat treatment capacity in France and additional high pressure HIP capability in the US.
Average capital employed for the period was £231.1m (2014: £233.7m).
Automotive & General Industrial (AGI)
Revenues for the AGI business were £171.0m in the first half of 2015, compared with £178.8m in 2014, a decrease of 4.4%. Revenues increased by 1.3% at constant exchange rates, with soft conditions in a number of general industrial markets more than compensated for by continued growth from automotive customers.
Headline operating profit1 was £27.6m (2014: £25.3m), an increase of 9.1%, made up of organic growth of 16.0% and a 6.9% decrease due to adverse foreign currency movements. Headline operating margin improved from 14.1% to 16.1%.
Net capital expenditure was £20.5m (2014: £19.9m) representing a spend rate of 1.3 times depreciation (2014: 1.2 times). The Group continues to invest in its specialist technologies and other high value-added processes in developed markets and in additional greenfield capacity in Mexico, Eastern Europe and China.
Average capital employed for the period was £296.3m (2014: £299.3m).
- Headline operating profit is reconciled to operating profit in note 2. Bodycote plants do not exclusively supply services to customers of a given market sector (see note 2).