Melrose Industries PLC Trading Statement (0958H)
November 13 2018 - 2:00AM
UK Regulatory
TIDMMRO
RNS Number : 0958H
Melrose Industries PLC
13 November 2018
13 November 2018
MELROSE INDUSTRIES PLC
TRADING UPDATE
Melrose Industries PLC ("Melrose" or the "Group") publishes the
following trading update for the four months from 1 July 2018 to 31
October 2018 (the "Period"). All numbers are calculated at constant
currency.
Melrose is trading in line with the Board's expectations for
2018.
In the Period, Melrose has seen strong revenue growth in
Aerospace and Powder Metallurgy with flat revenue in Automotive.
Melrose is confident the GKN businesses offer an outstanding
opportunity for value creation over the medium term.
Divisional highlights
Aerospace
Aerospace is performing well, revenue was up over 6% on last
year in the Period and good progress has been made on margin
including improvement in the performance of North America. With an
experienced and incentivised management team, the Aerospace
business is making the improvements necessary to achieve the
acquisition objectives.
Powder Metallurgy
This business has achieved revenue growth in the Period of 9%
compared to last year with improved margins. This good momentum
gives confidence that the 14% margin target can be achieved in the
medium term.
Automotive
In the Automotive division, revenue has been flat in the Period
compared to last year despite some well publicised industry
factors. Consistent with previous reporting periods, margin was
lower but Melrose remains confident that operational improvements
identified on acquisition are achievable and will positively impact
performance in 2019 and beyond.
Liam Butterworth was appointed CEO of the Automotive division on
5 November 2018. He is assembling a new management team from
internal and external sources to significantly enhance the
performance of the business.
Nortek Air & Security and Other Industrial
Nortek Air & Security has achieved broadly flat sales
compared to last year in the Period. The effects of U.S. tariffs in
these businesses are materially confined to Security and Ergotron
in respect of their factories based in China, and thus tariff
issues for these businesses should not have a material effect on
the Melrose Group.
Net Debt
Net debt and cash generation are in line with the Board's
expectations.
Melrose will be presenting its full year results on 7 March
2019, and hosting a Capital Markets Day in London on 3 April 2019
focused on the Aerospace and Automotive divisions.
Christopher Miller, Chairman of Melrose said:
"Melrose has a proven business model, which has been successful
over many years and through several economic cycles. We are
confident that there is an outstanding opportunity to make
significant and lasting improvements to the performance of the GKN
businesses. Whilst certain end markets may be unpredictable, the
Group is on track to meet our expectations for this year. We are
excited by the future prospects of the Group and look forward to
delivering significant value for shareholders."
-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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