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Manufacturing & engineering

Bodycote shares pop on raised 2017 outlook

The metal-treatment specialist is also examining full effects of US tax changes

Shares of Bodycote PLC surged early Monday after the group lifted guidance for the full year on better-than-expected trading in the final quarter.

The metal-treatment specialist's board now expects headline operating profit for the year ended 31 December 2017, to be towards the high end of market expectations.

The company’s compiled analysts' estimates indicate a range between £117mln and £126mln.

READ: Bodycote rallies as it sees full year profits at top end of market forecasts

The stock jumped more than 7% to 1,023p with the revelation.

US tax changes accretive

While the firm said it is still examining the full effects of recent US tax legislation on future results, it expects a significant non-cash tax credit for 2017 as a result of the revaluation of US net deferred tax liabilities that will add about 5p to earnings per share on the year.

Bodycote is scheduled to announce full results March 6.

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