GKN Powder Metallurgy sales dip due to General Motors strike

November 27, 2019

Melrose Industries PLC, UK, has published a trading update for its third quarter, July 1 to October 31, 2019, in which it states that its GKN Powder Metallurgy division was impacted by the temporary effects of the General Motors strike, leading to a sales decline of 13% when compared to the same period last year. However, the company stated that without the strike, revenue would have been in line with the Board of Director’s expectations.

Melrose confirmed that during the trading period, contracts were exchanged to acquire Forecast 3D, an Additive Manufacturing company which had sales of $19 million in 2018. The acquisition is expected to complete by the year end and will reportedly further expand GKN Powder Metallurgy’s capabilities in this growing market.

The GKN Aerospace division was reported to have achieved sales growth of over 5% in the quarter, compared to the same period last year, outperforming the board’s expected longer term average growth rate. In addition, good margin improvement has been delivered compared to the same period last year. GKN Automotive also delivered a higher profit and margin in the period compared to the same period last year. Sales were down 5% year-on-year, which included the temporary effect of the General Motors strike in the USA.

Melrose stated that group net debt was in line with the board’s expectations, with significant investment and restructuring actions being funded to further improve performance and initial steps to reduce working capital in GKN being implemented as planned.

Justin Dowley, Chairman of Melrose stated, “Melrose continues to do what it has always done well: improve businesses. Some macro conditions could be more helpful, but this has not stopped us continuing to transform the GKN businesses, delivering another trading period in line with expectations, and achieving better trends than seen in the first half of the year. We are excited about what is possible and confident in our ability to unlock significant further shareholder value.”

www.melroseplc.net  |  www.gkn.com/powdermetallurgy

In the latest issue of PIM International…

Download PDF

Extensive MIM, CIM industry and sinter-based AM industry news, plus the following exclusive deep-dive articles and reports:

  • Calling all product designers: Discover what Metal Injection Moulding could do for you through these award-winning parts
  • Binder Jetting of a dual-phase steel: Process insight and optimisation using the Master Sintering Curve
  • The rise of filament-based metal AM: New materials and machines present opportunities for MIM producers
  • Sinter-based Additive Manufacturing at the 20th Plansee Seminar on Refractory Metals and Hard Materials
  • Ceramitec 2022: Opportunities abound for producers of technical ceramics by CIM and AM

The latest news from the MIM, CIM and sinter-based AM industries

Don't miss any new issue of PIM International, and stay up to date with the latest industry news. Sign up to our fortnightly newsletter.

Sign up

News from the industry…

    Discover our magazine archive…

    The free-to-access PIM International magazine archive offers unparalleled insight into the world of MIM, CIM and sinter-based AM from a commercial and technological perspective through:

    • Reports on visits to leading part manufacturers and industry suppliers
    • Articles on technology and application trends
    • Information on materials developments
    • Reviews of key technical presentations from the international conference circuit
    • International industry news

    All past issues are available to download as free PDFs or view in your browser.

     

    Browse the archive

     

    Looking for suppliers of materials, production equipment and finished MIM, CIM or sinter-based AM parts?

    Discover suppliers of these and more in our advertisers’ index and buyer’s guide, available in the back of PIM International.

    • Metal powders
    • MIM, CIM & AM parts producers
    • Binders & feedstocks
    • Feedstock mixers
    • Furnaces & furnace supplies
    • Atmospheres & gas generation
    • HIP systems & services
    • Injection moulding machines
    • AM technology
    • Debinding systems
    Download PDF
    Share via
    Copy link
    Powered by Social Snap