Melrose reports return to profitability for Powder Metallurgy business

Companies & MarketsNews
November 25, 2020

November 25, 2020

GKN Powder Metallurgy is the world’s largest producer of PM parts (Courtesy Melrose)

Melrose Industries PLC, UK, which includes GKN Powder Metallurgy, GKN Aerospace and GKN Automotive, has published a trading update for the four months from July 1, 2020, to October 31, 2020. Melrose states that the performance of the group in the period reflected a faster than expected recovery in automotive markets, first seen over the summer; continued strong performance in its Nortek Air Management business; and more challenging, although currently stable, market conditions in the Aerospace business.

“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,” stated Justin Dowley, chairman of Melrose Industries PLC. “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.”

Both the Automotive and Powder Metallurgy businesses are reported to have seen an improvement in trading during the period. Automotive revenue was down 3% and Powder Metallurgy 7% lower when compared with the same period last year. There has, in both cases, been an improving trend through the period, although it was noted that these stronger trends were boosted by the impact of the General Motors strike in the latter part of the same period last year.

Melrose reports that both businesses quickly returned to profitability, with operating margins over 6% for the period in Automotive and over 7% in Powder Metallurgy, said to reflect the increasing benefits arising from the significant management actions taken.

The Aerospace business did not see a recovery in its trading conditions, however, with sales declining 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, the company explains, and it is expected that the business will broadly break even for the full year.

Overall, the Melrose group is said to be currently trading at the top end of the Board’s expectations for 2020. Although encouraged by this, the Board states that given the global uncertainty, caution is required on any predictions for next year.

www.melroseplc.net

Companies & MarketsNews
November 25, 2020

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