Shares of Melrose Plc (MRO.L) dropped about 14 percent Friday morning, after the manufacturing buy-out specialist said revenue trends have slowed and sales outlook for 2013 has become more uncertain.
"Opportunities to improve the Group exist including those arising from the acquisition of Elster and this gives the Board confidence that Melrose will continue to prosper," the company said.
In an interim management statement for the period from July 1 to-date, Melrose however said trading is in line with expectations for 2012 and its five month order book gives protection to its short term outlook.
The acquisition of Elster Group was completed in the period. The company said its board remains confident of delivering significant shareholder value over the medium term from the acquisition.
It was on June 29, that German engineering firm Elster Group SE agreed to be acquired by Melrose for $2.3 billion or 1.5 billion pounds in cash.
According to Melrose, overall weekly rate of order intake in the period was 8 percent lower than the first half of the year.
In Energy division, revenue in Turbogenerators in the period grew 17 percent from last year. In Lifting, revenue growth slowed in the period but achieved 6 percent rise. Order intake in October and November was trending lower, the company added.
MRO.L is currently trading at 205.10 pence, down 30.90 pence or 13.09 percent, on a volume of 13.79 million shares on the LSE.
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