Melrose Industries PLC (LSE:MRO, OTC:MLSPF) said trading for the four months to end-April is in line with expectations for the year and that it continued to make good progress amid broader world challenges.
However, the company said its Automotive and Powder Metallurgy divisions, which together accounted for almost two thirds of the group’s adjusted revenue in 2021, remained constrained by supply issues.
Combined like-for-like sales for the two divisions were down 4%, significantly below underlying consumer demand levels, the FTSE-100 company said ahead of its Annual General Meeting later today.
Its Aerospace division is experiencing continued growth, consistent with industry trends, with like-for-like sales up 6%.
The company said it is confident that its “well-advanced restructuring actions” will ensure that all its businesses are positioned to deliver their full potential as supply constraints ease and added that it had made “substantial progress” in recovering inflation.
“Due to the time lag effect the financial performance will be second-half weighted, but Melrose is confident the impact of inflation can be offset by the measures taken,” it said in a trading update.
"Your group continues to make good progress whilst dealing with the broader world challenges,” said chief executive Simon Peckham.