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5 October 2021 MELROSE INDUSTRIES PLC Melrose Trading Update Melrose Industries PLC ( " Melrose ” or the " Group " ) publishes the following trading update for the period 1 July 2021 to 30 September 2021 ( the " Period " ) . All numbers are calculated at constant currency . Trading update Melrose is seeing improvement in the Aerospace end markets with revenue in the Period being 16 % ¹ higher than the same period last year . The Aerospace business continues to improve its performance through restructuring , and we expect the pace of this to further pick up during the second half . As previously discussed , there are well publicised supply constraints in the automotive industry , and this naturally affects the performance of the Automotive and Powder Metallurgy divisions . At present the timing and duration of these constraints is uncertain , but recently the consensus view is that they have lengthened . There are a number of scenarios possible , but it is likely these are below previous expectations . The underlying demand from Automotive customers is strong , with the near - term schedules from customers being above 2019 pre - COVID - 19 levels . Those schedules are , however , then being heavily constrained by the customers due to their supply chain issues caused by the global shortage of semi - conductors . This is best illustrated by ' in month cancellations ' from customers rising from a normal rate of c.1 % each month experienced in Q1 this year to a current rate of approximately 20 % to 25 % . A similar theme is impacting Powder Metallurgy . These industry supply issues are very difficult to plan for , or predict , and both businesses are working with their customers to best manage this challenging situation . The Automotive and Powder Metallurgy divisions would nevertheless both still be able to deliver a full year margin of approximately twice that achieved last year should the supply for light vehicle production this year more closely resemble 2020 COVID - 19 levels ( i.e. approximately 76 million vehicles ) , as some industry bodies now assume . This shows the clear benefit from the restructuring projects being delivered especially as there is much less governmental help for the industry this year compared to last . Melrose is confident that the scale of the impact on profitability from any revenue adjustment is in line with previous guidance given on margin drop - through , further underlining the good progress being made with the restructuring of these businesses . Both the Automotive and Powder Metallurgy businesses are fully on track to achieve their margin targets once supply constraints are resolved . As an inflationary environment returns , all of the businesses are focussed on the recovery of their costs and will take whatever actions are necessary to do so . Cash generation in the year is expected to be managed well , with all businesses showing positive cash flows , despite the supply constraints in the automotive industry , and with continued investment in new technology and restructuring . The disposal of Nortek Control for $ 285 million has been successfully completed . Melrose Industries PLC Leconfield House Curzon Street London W1J 5J A Tel : 020 7647 4500 Fax : 020 7647 4501 Registered in England & Wales Registered no : 09800044 Registered office : 11th floor The Colmore Building Colmore Circus Queensway Birmingham West Midlands B4 6AT