Melrose Industries PLC Trading Statement (8158T)
19 November 2019 - 6:00PM
UK Regulatory
TIDMMRO
RNS Number : 8158T
Melrose Industries PLC
19 November 2019
19 November 2019
MELROSE INDUSTRIES PLC
TRADING UPDATE
Melrose Industries PLC ("Melrose" or the "Group") publishes the
following trading update for the four months from 1 July 2019 to 31
October 2019 (the "Period"). All numbers are calculated at constant
currency.
Melrose is trading in line with the Board's expectations for
2019.
The improvements in the businesses are being delivered at pace
and the Melrose Board is confident this will unlock significant
further shareholder value.
Divisional highlights
Aerospace
Aerospace has achieved sales growth of over 5% in the Period
compared to the same period last year, once again outperforming the
Board's expected longer term average growth rate. In addition, good
margin improvement has been delivered compared to the same period
last year.
Automotive
Automotive delivered a higher profit and margin in the Period
compared to the same period last year.
In the Period sales were down 5% year-on-year, which includes
the temporary effect of the General Motors strike in the US. The
business consequently showed, once more, its ability to perform
impressively even with this market headwind.
Powder Metallurgy
Powder Metallurgy was impacted proportionately more than
Automotive by the temporary effect of the General Motors strike,
which led to a sales decline of 13% in the Period compared to the
same period last year - without the strike revenue would have been
in line with the Board's expectations.
In the Period, contracts were exchanged to acquire Forecast 3D,
a leading player in 3D printing, which had 2018 sales of $19
million. This acquisition is expected to complete by the year end
and will further expand Powder Metallurgy's capabilities to become
a leading global player in this fast growing and exciting
market.
Nortek Air & Security
Nortek Air & Security has seen improving year-on-year trends
in the Period compared to those seen in the first half of the year.
The division achieved modest sales growth with margins similar to
those achieved in the same period last year.
Other Industrial
Other Industrial is trading in line with the Board's
expectations.
Net Debt
Group net debt was in line with the Board's expectations with
significant investment and restructuring actions being funded to
further improve performance and initial steps to reduce working
capital in GKN being implemented as planned.
Melrose will be presenting its full year results on 5 March
2020.
Justin Dowley, Chairman of Melrose, said:
"Melrose continues to do what it has always done well: improve
businesses. Some macro conditions could be more helpful, but this
has not stopped us continuing to transform the GKN businesses,
delivering another trading period in line with expectations, and
achieving better trends than seen in the first half of the year. We
are excited about what is possible and confident in our ability to
unlock significant further shareholder value."
-ends-
Enquiries:
Melrose Investor Relations:
+44 (0) 207 647 4500 / +44 (0) 7974 974690 /
ir@melroseplc.net
Montfort Communications:
Nick Miles +44 (0) 20 3514 0897 / +44 (0) 7973 130 669 / miles@montfort.london
Charlotte McMullen +44 (0) 20 3514 0897 / +44 (0) 7921 881 800 /
mcmullen@montfort.london
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END
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