Bodycote International, the materials services company, said it had overcome rising energy prices and expected to achieve full-year sales and operating profits in line with forecasts.
Last year, Bodycote's turnover was £457.2 million, operating profit was £43.6 million and pretax profit was £44.2 million.
This year, a consensus of analysts forecasts is for a pretax profit of £58.5 million on turnover of £467.7 million.
In the Midlands, the companies employs 250 people at sites in Aldridge, Coventry, Great Barr, Birmingham, Walsall, Droitwich, Dudley, Nuneaton and Wolverhampton.
The company said in a preclose statement that sales growth for the year to date - at constant exchange rates - had been nine per cent ahead, of which four per cent came from acquisitions and five per cent organic growth.
Acquisitions completed during the year are expected to contribute about £18 million in sales in 2005 and £32 million in a full year.
"Energy costs have continued to increase and are being largely passed on to customers, although the recovery lag is typically several months," the company said.
It added: "The execution of the group's strategy of expanding the Testing business and to widen the geographic coverage of Heat Treatment and HIP remains firmly on track."
Demand had softened slightly from continental European automotive customers, leading to a five per cent organic growth in sales in the second half, compared with five per cent previously.
The company said: " Demand from the aerospace, power generation, oil and gas and health science sectors are buoyant but prospects for automotive remain uncertain."
The most notable increases in energy costs have been in North America, in the immediate aftermath of the two Gulf Coast hurricanes, where prices are still 60 per cent above pre-hurricane levels, and in the UK, where wholesale gas prices have increased.
Since the interim results the company has made three bolt on acquisitions, including two testing laboratories in North America - Food Products Laboratory, in Portland, Oregon, US, which complements the UK and Canadian food testing businesses, and Arthur Gordon Environmental Evaluators, based in Montreal, Canada.