The market reaction to Melrose Industries PLC (LSE:MRO, OTC:MLSPF)’s latest trading update suggests that the aerospace manufacturing giant’s forward guidance more than offsets ongoing supply-chain issues.
Melrose highlighted the “industry-wide supply chain issues” in an update for the period between 1 July and 31 October.
However, the cautious statement also came with some bullish financial guidance for the year ahead.
The FTSE 100-listed group reaffirmed its full-year adjusted operating profit guidance of £550 million to £570 million.
For the following year, Melrose anticipates achieving an adjusted operating profit target of £700 million.
Melrose also expects a significant improvement in its cash flow position in 2025 following the completion of restructuring programs and the resolution of ongoing operational issues.
Following the trading update, Melrose shares surged 7.2% to a three-and-a-half-month high of 524.6p each.