Melrose reports positive start to year for GKN Powder Metallurgy

May 11, 2021

Melrose Industries PLC, UK, has published a trading update for the four months from January 1–April 30, 2021, with the company stating that it is trading modestly ahead of expectations, with the momentum seen in the second half of 2020 continuing into 2021. Sales in the period were reported to be 8% higher than in the same period in 2020.

The operating margins achieved in the first quarter of the year were reported to have continued to improve faster than expected. Cash generation for the group was also said to be encouraging, with Melrose being cash neutral in the first quarter, in what is traditionally a cash outflow period.

GKN Powder Metallurgy – consisting of GKN Sinter Metals, GKN Additive and GKN Hoeganaes – is reported to have seen a strong recent trading performance, with sales in the period being up 35% compared to the same period in 2020. The division was also up 1% on 2019 figures, with margins in the first quarter significantly higher than those achieved in the second half of last year and also higher than the same period in 2019.

Melrose added that its Powder Metallurgy business is gaining market share and improving its operations, both of which are trends it expects to continue.

The company added that it will be holding an Investor Day to discuss its Automotive and Powder Metallurgy divisions on May 20, allowing it to explain in more detail the improvement, growth, and new technology opportunities in these businesses.

“We are pleased with our start to the year and hopefully will see this momentum continue for the rest of the year. We are encouraged by the significant improvements made to the GKN businesses being reflected in their financial performance. We are confident that GKN will be as successful as previous acquisitions, a track record illustrated recently by the announced sale of Nortek Air Management,” stated Simon Peckham, CEO of Melrose Industries PLC.

In the latest issue of Metal AM magazine

Download PDF

Extensive AM industry news coverage, as well as the following exclusive deep-dive articles:

  • Metal powders in Additive Manufacturing: An exploration of sustainable production, usage and recycling
  • Inside Wayland Additive: How innovation in electron beam PBF is opening new markets for AM
  • An end-to-end production case study: Leveraging data-driven machine learning and autonomous process control in AM
  • Consolidation, competition, and the cost of certification: Insight from New York’s AM Strategies 2024
  • Scandium’s impact on the Additive Manufacturing of aluminium alloys
  • AM for medical implants: An analysis of the impact of powder reuse in Powder Bed Fusion

The world of metal AM to your inbox

Don't miss any new issue of Metal AM magazine, and get the latest industry news. Sign up to our twice weekly newsletter.

Sign up

Discover our magazine archive…

The free to access Metal Additive Manufacturing magazine archive offers unparalleled insight into the world of metal Additive Manufacturing from a commercial and technological perspective through:

  • Reports on visits to leading metal AM part manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

Browse the archive

Looking for AM machines, metal powders or part manufacturing services?

Discover suppliers of these and more in our comprehensive advertisers’ index and buyer’s guide, available in the back of Metal AM magazine.

  • AM machines
  • Process monitoring & calibration
  • Heat treatment & sintering
  • HIP systems & services
  • Pre- & post-processing technology
  • Powders, powder production and analysis
  • Part manufacturers
  • Consulting, training & market data
View online
Share via
Copy link
Powered by Social Snap