www.melroseplc.net
Melrose current trading in line and integration of FKI ahead of plan
Engineering group Melrose PLC said current trading remains in line with company expectations and the integration of FKI is proceeding ahead of plan.
The outlook for the global economy has clearly deteriorated over the last few weeks, the group said in an interim management statement, however, the strength and the spread of its businesses and products, the significant opportunities presented by the acquisition of FKI and the benefits from foreign currency translation give the board confidence that 2009 will be a year of progress.
Current conditions in the financial markets have made the sale of Logistex a longer process than hoped for. The company remains confident of a sale, but if it does not find a seller by the end of the year it will implement plans for operational improvements to the business.
Dynacast continues to perform well, but current market conditions are likely to hit future sales, while the Truth business is performing in line with expectations consistent with the depressed conditions prevalent for some time in the US housing market.
As planned at acquisition, Hickory's operations will be discontinued by the year end, resulting in positive cash flow for the group.
Trading across Melrose’s Lifting Products and Energy Technology divisions in the reported period July 1 – November 18 2008 has been good and they have strong order books.
The already flagged review of MVC, its automotive exterior trim products business, in view of the conditions in the US is now almost complete and by the year-end the group will have taken the appropriate action.
