News

Melrose Industries Outperforms Expectations, Raises Aerospace Guidance

1 Mins read

Melrose Industries has reported that it is performing ahead of expectations, leading to an increase in its aerospace guidance for the year. The London-listed turnaround specialist cited higher aftermarket demand and pricing, as well as operational improvements, as key factors driving its strong performance.

During the period from July 1 to Oct. 31, Melrose Industries experienced an 18% increase in revenue, with underlying demand also showing positive growth. As a result of stronger underlying margins, the company has raised its profit expectations for 2023 by 7%. This will more than double profits compared to the previous year.

The engines division saw revenue growth at 18% and achieved adjusted operating margins of over 25%. This impressive performance was partly driven by a 24% increase in aftermarket trading.

Looking forward to 2023 and beyond, Melrose Industries expects adjusted operating profit in the aerospace division to range between £400 million and £410 million ($496.7 million to $509.1 million). This exceeds the previous guidance of £375 million to £385 million. Group revenue is projected to be between £3.3 billion and £3.4 billion. For 2024, revenue is expected to fall between £3.5 billion and £3.7 billion, with the aerospace division anticipating adjusted operating profit in the range of £520 million to £540 million and an adjusted operating margin of around 15%.

Melrose Industries expressed confidence in the ongoing performance of the business, stating that significant operational improvements are being made in both Engines and Structures divisions to further enhance margins.

Shares of Melrose Industries rose 6 pence, or 1.1%, reaching 538.60 pence at 0822 GMT.

Related posts
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…
News

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

64 − 54 =