Melrose Industries PLC (LSE:MRO, OTC:MLSPF) has reported “industry-wide supply chain issues” that continue to constrain production volumes in its Engines and Structures divisions.
The FTSE 100-listed manufacturer highlighted the ongoing issues In a trading update for the period between 1 July and 31 October.
Despite these disruptions, the company reaffirmed its full-year adjusted operating profit guidance of £550 million to £570 million.
Looking forward, Melrose expects a significant improvement in its cash flow position in 2025 following the completion of restructuring programs and the resolution of ongoing operational issues.
Chief executive Peter Dilnot stated: "It's encouraging that we remain on track to deliver on our full-year expectations, despite the industry-wide supply chain challenges.
“This reflects the strength of our businesses and the balanced position we have with original equipment headwinds. As we move into 2025, we enter a period of significant and sustained cash generation for many years ahead.
“I am confident that Melrose's established capabilities, technology leadership, and industry relationships with the world's leading aircraft and engines will create substantial value in the future."
Melrose anticipates achieving an adjusted operating profit target of £700 million next year.