Revenues from the aerospace and defence markets decreased 0.6% (at constant exchange rates). The Group saw good growth in civil aviation in the UK and France, notably related to engine programmes. However, demand in the North American market was 4.9% lower (at constant exchange rates) mainly due to reduced requirements for business jets. Revenues in the defence sector saw some improvement and were 0.3% ahead of the same period last year (at constant exchange rates).

As expected, revenues from the energy sector were very weak, driven by a further significant decline in demand from the oil & gas sector, which was down 47.6% year on year (at constant exchange rates). This impacted not only Classical Heat Treatment but also two of the Group's Specialist Technologies, HIP PF and Surface Technology. Revenues to industrial gas turbine and other energy sectors were broadly flat. In total, revenues across all energy sectors were down 34.3% (at constant exchange rates) compared to the first six months of 2015.

Demand from the car and light truck sector continues to be robust in all geographies and was aided by increases in recently-won new programmes, especially for the Group's Specialist Technologies. Revenue growth was 3.1%1 (at constant exchange rates) when compared to the first half of last year.

Demand in the heavy truck market was weak in both North America and Europe. Revenues to the sector were down 15.2%1 year on year (at constant exchange rates).

There has been continued widespread softness in industrial production in both North America and Western Europe and to a lesser extent in the emerging markets. The impact has been felt widely in the general industrial business, most notably in reduced demand for a wide variety of industrial machinery, particularly large capital equipment, affecting both new build and aftermarket. Overall, general industrial revenues were down 5.0%1 (at constant exchange rates) in comparison with the first half of 2015.

Growth in the emerging markets was good, particularly due to increasing revenues from the automotive sector, reflecting the Group's continuing investment in these territories in support of new programme opportunities. Overall, Group revenues in these territories were up 14.4%1 (at constant exchange rates).

  1. Excluding closed sites and the business in Brazil, which was sold in the second half of 2015.