Melrose Industries, which owns GKN businesses, says that it is trading ‘at the top end’ of the board’s expectations for 2020.
For the four-month period between 1 July 2020 to 31 October 2020, aerospace sales dclined by 37% in the Period compared to the same period last year, a similar trend to that seen since mid-March this year. ‘The benefits of significant restructuring and cost saving actions are starting to feed through and we continue to expect the business broadly to break even for the full year, the company said.
Automotive and powder metallurgy reportedly saw an improvement in trading with automotive revenue down 3% and powder metallurgy 7% lower compared with the same period last year. operating margins were over 6% in Automotive and over 7% in powder metallurgy.
‘Trading in the Period has been encouraging in a number of our end markets and we are seeing the benefits of actions taken by management in our businesses’ performance,’ said Justin Dowley, chairman. ‘While short-term uncertainty remains, we are confident that our businesses can substantially improve their margins from today over the medium-term even without the need for full end market recovery.’
This story uses material from Melrose, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.
