Melrose FY profits soar, sees stronger aerospace earnings in 2023

UK defence and commercial engineer Melrose Industries said 2022 profits came in higher than expected and forecast a significantly stronger performance from its aerospace unit this year.

Adjusted full-year pre-tax profit came in at £384m, compared with £194m in 2021.

GKN owner Melrose, which supplies parts for jets and the auto industry, said it expected double-digit growth in revenue for its aerospace division in 2023.

“The recovery in the aerospace sector is well underway. GKN Aerospace's improved performance is expected to be significantly stronger than we anticipated for 2023 and beyond,” the company added.

“Supported by pent up demand in civil aviation and increases in defence budgets, double digit revenue growth is expected again this year. GKN Aerospace remains well-placed to support near and medium-term volume ramp-ups, while continuing to execute on its longer-term growth and productivity initiatives.”

“GKN Aerospace is fully committed to offsetting inflationary pressures and managing supply chain issues. The coming years are expected to deliver significant profit and cash generation from its range of best in class engines platforms.”

The company said the demerger of its GKN Automotive and GKN Powder Metallurgy divisions was still on track and expected to be completed on April 20 pending a shareholder vote on March 30.

Reporting by Frank Prenesti for Sharecast.com