LONDON (dpa-AFX) - Melrose Industries PLC (MRO.L) said the Group is seeing improvement in the Aerospace end markets with revenue for the period 1 July 2021 to 30 September 2021 being 16% higher than the same period last year. The Aerospace business continues to improve its performance through restructuring, the Group said. The supply constraints naturally affects the performance of the Automotive and Powder Metallurgy divisions, the Group noted.
Melrose said all its businesses are on track to achieve their margin targets assuming partial end market recoveries. The Group anticipates cash generation in the year to be managed well, with all businesses showing positive cash flows.
Simon Peckham, Chief Executive of Melrose, said: 'Tightened supply of semi-conductors to the automotive industry are frustrating and difficult to plan for, but whilst they affect current trading, they don't impact long-term value, particularly as cash is well controlled and debt reduced.'
Melrose stated that the Automotive and Powder Metallurgy businesses are fully on track to achieve their margin targets once supply constraints are resolved. The Group is confident that the scale of the impact on profitability from any revenue adjustment is in line with previous guidance given on margin drop-through.
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