Melrose Industries PLC, UK, parent company of GKN Powder Metallurgy, GKN Aerospace and GKN Automotive, has published its trading update for the year to-date, covering January 1–April 30, 2022.
Trading for the group is said to be in line with expectations for the year. Consistent with industry trends, Melrose’s Aerospace division is experiencing continued growth with like-for-like sales up 6%, while the Automotive and Powder Metallurgy divisions remain constrained by supply, with combined like-for-like sales down 4%, noted as significantly below underlying consumer demand levels.
The Melrose Board is said to be confident that its continuing restructuring actions will ensure all its businesses are positioned to deliver their full potential as supply constraints ease. In addition, substantial progress is reported to have been made in recovering inflation, and Melrose is reportedly confident the impact of inflation can be offset by measures it has taken.
Melrose will be holding a GKN Aerospace Investor Day on June 8 to explain in more detail the full potential for the business including growth and improvement opportunities, long-term cash flow dynamics and new sustainable technology.
“Your group continues to make good progress whilst dealing with the broader world challenges. We are increasingly seeing growth return to our Aerospace business, which is being rapidly well positioned for its future, and are confident of demonstrating the full quality of our largely restructured automotive businesses,” stated Simon Peckham, CEO of Melrose Industries PLC. “We are well set to realise shareholder value as conditions improve.”