Shares in Melrose Industries PLC (LSE:MRO, OTC:MLSPF) fell 1.7% as the aerospace components maker reported a strong start to the year but kept full-year expectations unchanged after a recent upgrade.
Group revenue rose 8% and adjusted operating profit was said to be "up substantially" year on year, in line with expectations, thanks to restructuring projects and business improvements.
Of its two divisions, Engines grew 21%, while Structures was flat, as expected.
"Our end markets continue to be positive with strong demand and increasing backlogs in both civil and defence, and favourable Engines aftermarket dynamics," the FTSE 100 constituent said.
Full-year underlying profit guidance was unchanged at 33% year-on-year growth to £560 million at the midpoint, modestly weighted to the second half.
Chief executive Peter Dilnot said the good momentum from Engines is expected to continue throughout the year.
"Longer term, the group is well positioned to deliver ongoing growth and margin expansion supported by positive end markets and excellent business improvement momentum. We are confident about unlocking significant further potential in the years ahead."
Analysts at investment bank Stifel said the Q1 update from the company is "unusually uneventful, and reassuringly robust given some supply chain pressures being reported by other companies in the aerospace peer group over recent weeks".
"Melrose itself seems to be making good progress, and the group appears to be very much on track to meet its FY targets. "